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Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372 Exercise 40
Evaluating the Impact of Transactions on the Current Ratio
Refer to M2-23. Evaluate whether the current ratio of Mister Ribs Restaurant will increase or decrease as a result of the following transactions.
a. Paid $2,000 cash for a new oven.
b. Received a $2,000 cash contribution from an investor for the company's common stock.
c. Borrowed $5,000 cash from a bank, issuing a note that must be repaid in three years.
d. Purchased $500 of napkins, paper cups, and other disposable supplies on account.
Refer to M2-23. Evaluate whether the current ratio of Mister Ribs Restaurant will increase or decrease as a result of the following transactions.
a. Paid $2,000 cash for a new oven.
b. Received a $2,000 cash contribution from an investor for the company's common stock.
c. Borrowed $5,000 cash from a bank, issuing a note that must be repaid in three years.
d. Purchased $500 of napkins, paper cups, and other disposable supplies on account.
Explanation
Verified
Verified
Impact on current ratio after
a.
Payme...
Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
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