Koto corporation began the month of june

Assignment Help Managerial Accounting
Reference no: EM13897037

Koto Corporation began the month of June with $ 300,000 of current assets, a current ratio of 2.5:1, and an acid test ratio of 1.4:1. During the month, it completed the following transactions (the company uses a perpetual inventory system). 

June 1 Sold merchandise inventory that cost $ 75,000 for $ 120,000 cash. 3 Collected $ 88,000 cash on an account receivable. 
5 Purchased $ 150,000 of merchandise inventory on credit. 
7 Borrowed $ 100,000 cash by giving the bank a 60 day, 10% note. 
10 Borrowed $ 120,000 cash by signing a long  term secured note. 
12 Purchased machinery for $ 275,000 cash. 
15 Declared a $ 1 per share cash dividend on its 80,000 shares of outstanding common stock.
19 Wrote off a $ 5,000 bad debt against the Allowance for Doubtful Accounts account. 
22 Paid $ 12,000 cash to settle an account payable. 
30 Paid the dividend declared on June 15. 

Required: Prepare a table showing the company's (1) Current ratio, (2) Acid test ratio, (3) Working capital after each transaction. Round ratios to two decimals.

Reference no: EM13897037

Questions Cloud

Write a paper on a development lifecycle for an ids system : Write a paper on a development lifecycle for an IDS system
Suppose that the firms production function : Suppose that the firm’s production function is given by Q = 10KL1/3. The firm’s capital is fixed at K. What amount of labor will the firm hire to solve its short-run cost-minimization problem?
What is difference in economic bases various areas of city : What is the difference in economic bases of various areas of a city? Is it necessary to provide only well-educated officers to the citizens of well-educated areas? Cities are divided into radically different cultures.
Supply recover based on breach of express contract : Comfort Company assumed the operation of a hotel. The previous owner had a contract with Linen Supply. Linen Supply continued to furnish services after Comfort Company assumed ownership. Can Linen Supply recover based on breach of an express contract..
Koto corporation began the month of june : Koto Corporation began the month of June with $ 300,000 of current assets, a current ratio of 2.5:1, and an acid test ratio of 1.4:1.
General equilibrium-contract curve for initial allocation : Bert has an initial endowment of 10 units of food and 10 units of clothing. Ernie’s initial endowment consists of 10 units of food and 20 units of clothing. Represent these initial endowments in an Edge worth Box. Describe the set of allocations that..
Write an essay on judicial activism : Write an essay on (or discuss) judicial activism. Present the arguments on both sides of the question as to whether judges should interpret or simply apply the Constitution. Provide more current examples (the current Supreme Court docket) and predict..
Calculate the monthly usage index for each month : Calculate the monthly usage index for each month. Use simple linear regression to forecast total usage of pallets for year 5. Forecast the seasonally adjusted usage for pallets for each month in year 5.
Describe digital logic circuit on behavioral and gate level : describe digital logic circuit on behavioral and gate level;

Reviews

Write a Review

Managerial Accounting Questions & Answers

  How low could chavez bid for the charity event

Estimate the contribution to profit of a standard 180-guest cocktail party if Chavez charges her usual price of $31 per guest. (In other words, by how much would her overall profit increase?)

  Compute the missing amounts and prepare firms july report

a. Direct material is added at the beginning of the production process, and conversion activity occurs uniformly throughout the process.b. The company uses weighted-average process costing.c. The July 1 work in process was 30 percent complete as to c..

  Determine the total interest expense for 2014

Determine the total interest expense for 2014 and Journalize the entry to record the amount of cash proceeds from the issuance of the bonds

  Job order costing systems

The law firm of Tilton and Henderson accumulates costs associated with individual cases, using a job order cost system. The following transactions occurred during June:

  Organization assessment report on nordic investment bank

Organization assessment report on Nordic Investment Bank.

  Find net present value and internal rate of return

Calculate net present value (NPV), internal rate of return (IRR), and payback for the investment opportunity What information will you and your staff need to analyze this investment opportunity - how will you go about making the decision?

  Journalize the adjusting entry for bad debts at december

Journalize the adjusting entry for bad debts at December 31, 2013 - Journalize the adjusting entry for bad debts at December 31, 2014, assuming that the unadjusted balance in Allowance for Doubtful Accounts is a debit of 51,700 and the aging schedu..

  Question on relevant costs

A copier company has been using same Copier A for 5 years. This copier can copy approximately 50 sheets a minute. The company has opportunity to purchase the new Copier B which can process approximately 60 sheets a minute.

  1 a company purchased equipment for 20000 management

1. a company purchased equipment for 20000. management estimates that the equipment will have a useful life of five

  Under what conditions is a market based transfer price

1.What is a transfer price? Under what conditions is a market based transfer price most likely to be used?

  Should preston accept the order

What will the price be if Preston follows its normal pricing policy and should Preston accept the order? Briefly, indicate factors that, while hard to quantify, should be taken into account in this decision.

  Prepare a suggested price list for the atlanta area

Prepare a suggested price list for the Atlanta area. Consider only one-separation rounds and two-separation rounds or ovals, and only the two sizes - Calculate the variable costs per thousand bottles for one- separation rounds, two- separation rou..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd