Question
In: Accounting
Effect of Transactions on Current Position Analysis Data pertaining to the current position of Lucroy Industries...
Effect of Transactions on Current Position Analysis
Data pertaining to the current position of Lucroy Industries Inc. follow:
| Cash | $447,500 |
| Marketable securities | 187,500 |
| Accounts and notes receivable (net) | 300,000 |
| Inventories | 750,000 |
| Prepaid expenses | 46,000 |
| Accounts payable | 210,000 |
| Notes payable (short-term) | 230,000 |
| Accrued expenses | 300,000 |
Required:
Compute (a) the working capital, (b) the current ratio, and (c) the quick ratio. Round ratios to one decimal place.
| a. Working capital | $fill in the blank 1 |
| b. Current ratio | fill in the blank 2 |
| c. Quick ratio | fill in the blank 3 |
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. Consider each transaction separately and assume that only that transaction affects the data given. Round ratios to one decimal place.
| Transaction | Working Capital | Current Ratio | Quick Ratio | ||
| a. Sold marketable securities at no gain or loss, $80,000. | $fill in the blank 4 | fill in the blank 5 | fill in the blank 6 | ||
| b. Paid accounts payable, $110,000. | $fill in the blank 7 | fill in the blank 8 | fill in the blank 9 | ||
| c. Purchased goods on account, $120,000. | $fill in the blank 10 | fill in the blank 11 | fill in the blank 12 | ||
| d. Paid notes payable, $120,000. | $fill in the blank 13 | fill in the blank 14 | fill in the blank 15 | ||
| e. Declared a cash dividend, $145,000. | $fill in the blank 16 | fill in the blank 17 | fill in the blank 18 | ||
| f. Declared a common stock dividend on common stock, $40,000. | $fill in the blank 19 | fill in the blank 20 | fill in the blank 21 | ||
| g. Borrowed cash from bank on a long-term note, $225,000. | $fill in the blank 22 | fill in the blank 23 | fill in the blank 24 | ||
| h. Received cash on account, $130,000. | $fill in the blank 25 | fill in the blank 26 | fill in the blank 27 | ||
| i. Issued additional shares of stock for cash, $645,000. | $fill in the blank 28 | fill in the blank 29 | fill in the blank 30 | ||
| j. Paid cash for prepaid expenses, $11,000. | $fill in the blank 31 | fill in the blank 32 | fill in the blank 33 | ||
Solutions
ekkarill92 answered 10 months agoRelated Solutions
Effect of Transactions on Current Position Analysis Data pertaining to the current position of Lucroy Industries...
Effect of Transactions on Current Position Analysis
Data pertaining to the current position of Lucroy Industries
Inc. follow:
Cash
$450,000
Marketable securities
185,000
Accounts and notes receivable (net)
305,000
Inventories
700,000
Prepaid expenses
48,000
Accounts payable
240,000
Notes payable (short-term)
260,000
Accrued expenses
315,000
Required:
1. Compute (a) the working capital, (b) the
current ratio, and (c) the quick ratio. Round ratios to one decimal
place.
a. Working capital
$
b. Current ratio
c. Quick ratio
2. Compute the working...
Effect of Transactions on Current Position Analysis Data pertaining to the current position of Lucroy Industries...
Effect of Transactions on Current Position Analysis
Data pertaining to the current position of Lucroy Industries
Inc. follow:
Cash
$450,000
Marketable securities
185,000
Accounts and notes receivable (net)
305,000
Inventories
700,000
Prepaid expenses
48,000
Accounts payable
240,000
Notes payable (short-term)
260,000
Accrued expenses
315,000
Required:
1. Compute (a) the working capital, (b) the
current ratio, and (c) the quick ratio. Round ratios to one decimal
place.
a. Working capital
$
b. Current ratio
c. Quick ratio
2. Compute the working...
Effect of Transactions on Current Position Analysis Data pertaining to the current position of Lucroy Industries...
Effect of Transactions on Current Position Analysis
Data pertaining to the current position of Lucroy Industries
Inc. are as follows:
Cash $450,000
Marketable securities 177,500
Accounts and notes receivable (net) 310,000
Inventories 750,000
Prepaid expenses 48,000
Accounts payable 230,000
Notes payable (short-term) 245,000
Accrued expenses 305,000
Required:
1. Compute (a) the working capital, (b) the current ratio, and
(c) the quick ratio. Round ratios to one decimal place.
a. Working capital $
b. Current ratio
c. Quick ratio
2. Compute...
Effect of Transactions on Current Position Analysis Data pertaining to the current position of Lucroy Industries...
Effect of Transactions on Current Position Analysis
Data pertaining to the current position of Lucroy Industries
Inc. are as follows:
Cash
$425,000
Marketable securities
182,500
Accounts and notes receivable (net)
345,000
Inventories
750,000
Prepaid expenses
48,000
Accounts payable
220,000
Notes payable (short-term)
230,000
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.
a. Working capital
$
b. Current ratio
c. Quick ratio
2. Compute...
Effect of Transactions on Current Position Analysis Data pertaining to the current position of Lucroy Industries...
Effect of Transactions on Current Position Analysis
Data pertaining to the current position of Lucroy Industries
Inc. are as follows:
Cash
$405,000
Marketable securities
187,500
Accounts and notes receivable (net)
310,000
Inventories
750,000
Prepaid expenses
50,000
Accounts payable
210,000
Notes payable (short-term)
245,000
Accrued expenses
320,000
Required:
1. Compute (a) the working capital, (b) the
current ratio, and (c) the quick ratio. Round ratios to one decimal
place.
a. Working capital
$
b. Current ratio
c. Quick ratio
2. Compute...
Effect of Transactions on Current Position Analysis Data pertaining to the current position of Lucroy Industries...
Effect of Transactions on Current Position Analysis
Data pertaining to the current position of Lucroy Industries
Inc. follow:
Cash
$447,500
Marketable securities
187,500
Accounts and notes receivable (net)
300,000
Inventories
750,000
Prepaid expenses
46,000
Accounts payable
210,000
Notes payable (short-term)
230,000
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.
a. Working capital
$fill in the blank 1
b. Current ratio
fill in the...
Effect of Transactions on Current Position Analysis Data pertaining to the current position of Lucroy Industries...
Effect of Transactions
on Current Position Analysis
Data pertaining to the
current position of Lucroy Industries Inc. follow:
Cash
$417,500
Marketable securities
162,500
Accounts and notes receivable (net)
310,000
Inventories
700,000
Prepaid expenses
42,000
Accounts payable
190,000
Notes payable (short-term)
255,000
Accrued expenses
325,000
Required:
1.
Compute (a) the working capital, (b) the current ratio, and (c) the
quick ratio. Round ratios to one decimal place.
a. Working capital
$862,000
b. Current ratio
2.1
c. Quick ratio
1.2
2.
Compute...
Effect of Transactions on Current Position Analysis Data pertaining to the current position of Lucroy Industries...
Effect of Transactions on Current Position Analysis
Data pertaining to the current position of Lucroy Industries
Inc. are as follows:
Cash
$402,500
Marketable securities
160,000
Accounts and notes receivable (net)
330,000
Inventories
700,000
Prepaid expenses
46,000
Accounts payable
190,000
Notes payable (short-term)
230,000
Accrued expenses
290,000
Required:
1. Compute (a) the working capital, (b) the
current ratio, and (c) the quick ratio. Round ratios to one decimal
place.
a. Working capital
$
b. Current ratio
c. Quick ratio
2. Compute...
Effect of Transactions on Current Position Analysis Data pertaining to the current position of Lucroy Industries...
Effect of Transactions on Current Position Analysis
Data pertaining to the current position of Lucroy Industries
Inc. are as follows:
Cash
$800,000
Marketable securities
550,000
Accounts and notes receivable (net)
850,000
Inventories
700,000
Prepaid expenses
300,000
Accounts payable
1,200,000
Notes payable (short-term)
700,000
Accrued expenses
100,000
Required:
1. Compute (a) the working capital, (b) the
current ratio, and (c) the quick ratio. Round ratios to one decimal
place.
a. Working capital
$
b. Current ratio
c. Quick ratio
2. Compute...
1. Effect of Transactions on Current Position Analysis Data pertaining to the current position of Lucroy...
1.
Effect of Transactions on Current Position Analysis
Data pertaining to the current position of Lucroy Industries
Inc. are as follows:
Cash
$400,000
Marketable securities
185,000
Accounts and notes receivable (net)
325,000
Inventories
700,000
Prepaid expenses
50,000
Accounts payable
220,000
Notes payable (short-term)
255,000
Accrued expenses
290,000
Required:
1. Compute (a) the working capital, (b) the
current ratio, and (c) the quick ratio. Round ratios to one decimal
place.
a. Working capital
$
b. Current ratio
c. Quick ratio
2....
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