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    Nancypanda's Avatar
    Nancypanda Posts: 1, Reputation: 1
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    #1

    Jul 5, 2016, 09:03 AM
    Effect of Transactions on Current Position Analysis?
    Data pertaining to the current position of Forte Company are as follows:
    Cash
    $412,500
    Marketable securities
    187,500
    Accounts and notes receivable (net)
    300,000
    Inventories
    700,000
    Prepaid expenses
    50,000
    Accounts payable
    200,000
    Notes payable (short-term)
    250,000
    Accrued expenses
    300,000


    Required:
    1. Compute (A) the working capital, (B) the current ratio, and (C) the quick ratio. Round ratios to one decimal place.
    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 of the table provided. Consider each transaction separately and assume that only that transaction affects the data given. Round to one decimal place.
    A. Sold marketable securities at no gain or loss, $70,000.
    B. Paid accounts payable, $125,000.
    C. Purchased goods on account, $110,000.
    D. Paid notes payable, $100,000.
    E. Declared a cash dividend, $150,000.
    F. Declared a common stock dividend on common stock, $50,000.
    G. Borrowed cash from bank on a long-term note, $225,000.
    H. Received cash on account, $125,000.
    I. Issued additional shares of stock for cash, $600,000.
    J. Paid cash for prepaid expenses, $10,000.
    Curlyben's Avatar
    Curlyben Posts: 18,514, Reputation: 1860
    BossMan
    		  
    #2

    Jul 5, 2016, 09:39 AM
    What do YOU think ?
    While we're happy to HELP we wont do all the work for you.
    Show us what you have done and where you are having problems..
    ma0641's Avatar
    ma0641 Posts: 15,675, Reputation: 1012
    Uber Member
    		  
    #3

    Jul 5, 2016, 12:57 PM
    WOW! Good cut and paste job. Now, read the site rules on homework.
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