Exercise 13-7A (Algo) Working capital and current ratio LO 13-2 On June 30, Year 3, Finch Company's total current assets were $503,500 and its total current liabilities were $272,000. On July 1, Year 3, Finch issued a long-term note to a bank for $39,800 cash Required a. Compute Finch's working capital before and after issuing the note. b. Compute Finch's current ratio before and after issuing the note. Note: Round your answers to 1 decimal place. Working capital b. Current ratio Before the transaction After the transaction

Exercise 13-7A (Algo) Working capital and current ratio LO 13-2 On June 30, Year 3, Finch Company's total current assets were $503,500 and its total current liabilities were $272,000. On July 1, Year 3, Finch issued a long-term note to a bank for $39,800 cash Required a. Compute Finch's working capital before and after issuing the note. b. Compute Finch's current ratio before and after issuing the note. Note: Round your answers to 1 decimal place. Working capital b. Current ratio Before the transaction After the transaction

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 75E

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