Determine without computations if the current ratio

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Reference no: EM133327484

Case: Current assets for JC Inc. totalled $49,283, and the current ratio was 2.23. Assume that the following transactions were completed:

(1) Purchased merchandise for $5,300 on short-term credit.
(2) Purchased a delivery truck for $17,500-paid $4,932 cash and signed a two-year interest-bearing note for the balance.

Required:

Question 1. Determine without computations if the current ratio will increase, decrease, or remain unchanged after each transaction.

Question 2. Compute the current ratio after each transaction. (Round the final answers to 2 decimal places.)

Reference no: EM133327484

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