This Website Has Been Moved to a New Link


Loading

Bennis Incorporated

Price: $1.99


Bennis Incorporated had the following transactions occur involving current assets
and current liabilities during February 2013.


Feb. 3  Accounts receivable of $15,000 are collected. 
7 Equipment is purchased for $28,000 cash. 
11 Paid $3,000 for a 3-year insurance policy. 
14 Accounts payable of $12,000 are paid. 
18 Cash dividends of $5,000 are declared. 

Additional information:
1. As of February 1, 2013, current assets were $140,000, and current liabilities were
$50,000.
2. As of February 1, 2013, current assets included $10,000 of inventory and $5,000 of prepaid
expenses.

Instructions
(a) Compute the current ratio as of the beginning of the month and after each transaction.
(b) Compute the acid-test ratio as of the beginning of the month and after each transaction.

No comments:

Post a Comment