What is the new current ratio and acid test ratio, Accounting Basics

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What is the new current ratio and acid test ratio

What is the formula for calculating current ratio and acid test ratio after a transaction. For example, a Company has $1,000,000 of current assets, a current ratio of 1.8:1 and an acid test ratio of 1.4:1. First transaction is purchased $80,000 of merchandise inventory on credit. What is the new current ratio and acid test ratio and how do you get it.

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Accounting Basics: What is the new current ratio and acid test ratio

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: What is the new current ratio and acid test ratio

Reference No:- TGS063921

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Equation of an assumed linear demand curve

Q : Explain general pattern of change of market model

Q : What is barbara''s basis in the property for the sale

Q : What happens to afc per paper and the mc per paper

Q : What is the new current ratio and acid test ratio

Q : How much is willing to pay for a third pot

Q : Report as income from the property distribution

Q : At what point will the inventory be transferred

Q : Find the inverse demand curve

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: What is the new current ratio and acid test ratio

Reference No:- TGS063921

Recent Questions Asked Accounting Basics

Q : Equation of an assumed linear demand curve

Q : Explain general pattern of change of market model

Q : What is barbara''s basis in the property for the sale

Q : What happens to afc per paper and the mc per paper

Q : What is the new current ratio and acid test ratio

Q : How much is willing to pay for a third pot

Q : Report as income from the property distribution

Q : At what point will the inventory be transferred

Q : Find the inverse demand curve

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