Data pertaining to the current position of the J Company are as follows:
Cash $80,000
Temporary Investments 160,000
Accounts/Notes Receivables (net) 235,000
Inventories 190,000
Prepaid Expenses 10,000
Accounts Payable 158,000
Notes Payable (short term) 80,000
Accrued Expenses 12,000
1) Compute (a) the working capital (b) the current ratio, and (c) the quick ratio. Round to one decimal place.
2) Compute the working capital, current ratio, and quick ratio after each of the following transactions. CONSIDER EACH TRANSACTION SEPERATELY and that only THE TRANSACTION AFFETS the data given above. Round to one decimal place:
A) Sold temporary investment at no gain or loss, $35,000
B) Paid accounts payable, $40,000
C) Purchased goods on account, $75,000
D) Paid notes payable, $30,000
E) Declared a cash dividend, $15,000
F) Declared a common stock dividend on common stock, $32,000
G) Borrowed cash on a long term note, $150,000
H) Received cash on account, $175,000
I) Paid cash prepaid expenses, $10,000