Denna Company’s working capital
Denna Company’s working capital accounts at the beginning of the year follow:
  Â
     Cash$81,000     Marketable securities$24,400     Accounts receivable, net$376,400     Inventory$488,600     Prepaid expenses$15,700     Accounts payable$219,800    Notes due within one year$122,000     Accrued liabilities$69,900  Â
During the year, Denna Company completed the following transactions:Â Â Â
x.Paid a cash dividend previously declared, $41,000.a.Issued additional shares of common stock for cash, $222,000.b.Sold inventory costing $78,800 for $111,000, on account.c.Wrote off uncollectible accounts in the amount of $14,400, reducing the accounts receivable balance accordingly.d.Declared a cash dividend, $41,000.e.Paid accounts payable, $117,600.f.Borrowed cash on a short-term note with the bank, $76,500.g.Sold inventory costing $17,520 for $11,680 cash.h.Purchased inventory on account, $58,250.i.Paid off all short-term notes due, $198,500.j.Purchased equipment for cash, $83,800.k.Sold marketable securities costing $14,400 for cash, $12,000.l.Collected cash on accounts receivable, $92,100.  Â
Required:1.Compute the following amounts and ratios as of the beginning of the year:Â (Round your ratios to 2 decimal places.)Â Â Â Â Â Â Â Â
    2.Indicate the effect of each of the transactions given above on working capital, the current ratio, and the acid-test ratio. Give the effect in terms of increase, decrease, or none. Item (x) is given as an example: Consider each transaction independently and indicate their effects as compared to the ratios and amounts at the beginning of the period.
Answers
Status NEW
Posted 22 May 2017 08:05 AM
My Price 6.00
-----------
Attachments
file 1495441440-Solutions file.docx preview (56 words )
S-----------olu-----------tio-----------ns -----------fil-----------e
-----------Hel-----------lo -----------Sir-----------/Ma-----------dam-----------
T-----------han-----------k y-----------ou -----------for----------- yo-----------ur -----------int-----------ere-----------st -----------and----------- bu-----------yin-----------g m-----------y p-----------ost-----------ed -----------sol-----------uti-----------on.----------- Pl-----------eas-----------e p-----------ing----------- me----------- on----------- ch-----------at -----------I a-----------m o-----------nli-----------ne -----------or -----------inb-----------ox -----------me -----------a m-----------ess-----------age----------- I -----------wil-----------l b-----------e q-----------uic-----------kly----------- on-----------lin-----------e a-----------nd -----------giv-----------e y-----------ou -----------exa-----------ct -----------fil-----------e a-----------nd -----------the----------- sa-----------me -----------fil-----------e i-----------s a-----------lso----------- se-----------nt -----------to -----------you-----------r e-----------mai-----------l t-----------hat----------- is----------- re-----------gis-----------ter-----------ed -----------onÂ----------- th-----------is -----------web-----------sit-----------e.
-----------
H-----------YPE-----------RLI-----------NK -----------&qu-----------ot;-----------htt-----------p:/-----------/wo-----------rkb-----------ank-----------247-----------.co-----------m/&-----------quo-----------t; -----------\t -----------&qu-----------ot;-----------_bl-----------ank-----------&qu-----------ot;-----------
-----------Tha-----------nk -----------you-----------
-----------
Not Rated(0)