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E13-14 Analyzing the impact of Selected Transactions on the Current Ratio [LO 13-4, LO 13-5)...

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E13-14 Analyzing the impact of Selected Transactions on the Current Ratio [LO 13-4, LO 13-5) points A company has current assets that total $500,000, has a current ratio of 200, and uses the perpetual Inventory method. Assume that the following transactions are then completed: (1) sold $12.000 in merchandise on short-term credit for $15.000. (2) declared but did not pay dividends of $50.000. (3) pald prepaid rent in the amount of $12,000. (4) paid previously declared dividends In the amount of $50,000. (5) collected an account receivable in the amount of $12,000, and (6) reclassified $40,000 of long-term debt as a current liability Required: Compute the updated current ratio after each transaction, by showing the cumulative effects of the transactions in the following table. (Round your answers to 2 decimal places.) Current Ratio Print References Transaction (1) Transaction (2) Transaction (3) Transaction (4) Transaction (5) Transaction (6)

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