Compute the updated current ratio after each transaction

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Question - Good Sports, Incorporated, is a private full-line sporting goods retailer. Assume one of the Good Sports stores reported current assets of $90,720 and its current ratio was 1.80, and then completed the following transactions: (1) paid $5,900 on accounts payable, (2) purchased a delivery truck for $10,500 cash, (3) wrote off a bad account receivable for $2,100, and (4) paid previously declared dividends in the amount of $25,500.

Required - Compute the updated current ratio after each transaction, by showing the cumulative effects of the transactions.

Reference no: EM133150045

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