Wolfe Hospitality Consulting had the following transactions occur involving current assets and current liabilities during February :
Feb. Accounts receivable of $ are collected.
Equipment is purchased for $ cash.
Paid $ for a threeyear insurance policy.
Accounts payable of $ are paid.
Cash dividends of $ are declared.
Additional information:
As of February current assets were $ and current liabilities were $
As of February current assets included $ of inventory and $ of prepaid expenses.
Instructions
a Compute the current ratio as of the beginning of the month and after each transaction.
b Compute the acidtest ratio as of the beginning of the month and after each transaction.
