Solution-Compute the working capital and the current ratio

Compute the working capital and the current ratio

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Reference no: EM133126563

Question - Effect of Transactions on Current Position Analysis - Data pertaining to the current position of Lucroy Industries Inc. follow:

Cash	$425,000
Marketable securities	185,000
Accounts and notes receivable (net)	340,000
Inventories	700,000
Prepaid expenses	40,000
Accounts payable	210,000
Notes payable (short-term)	235,000
Accrued expenses	290,000

Required -

1. Compute (a) the working capital, (b) the current ratio, and (c) the quick ratio.

2. Compute the working capital, the current ratio, and the quick ratio after each of the following transactions and record the results in the appropriate columns. Consider each transaction separately and assume that only that transaction affects the data given.

Reference no: EM133126563

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Compute the working capital and the current ratio

Reference no: EM133126563

Reference no: EM133126563

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