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Business, 13.10.2020 03:01 mahmudabiazp3ekot

Gwynn Incorporated had the following transactions involving current assets and current liabilities during February 2020. Feb. 3 Collected accounts receivable of $15,200.
7 Purchased equipment for $28,400 cash.
11 Paid $2,000 for a 1-year insurance policy.
14 Paid accounts payable of $12,500.
18 Declared cash dividends, $4,000.
Additional information:
1. As of February 1, 2020, current assets were $135,810, and current liabilities were $50,300.
2. As of February 1, 2017, current assets included $14,800 of inventory and $1,800 of prepaid expenses.
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.
Current ratio
February 1 ? :1
February 3 ? :1
February 7 ? :1
February 11 ? :1
February 14 ? :1
February 18 ? :1
Acid-test ratio
February 1 ? :1
February 3 ? :1
February 7 ? :1
February 11 ? :1
February 14 ? :1
February 18 ? :1

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