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Eugene Incorporated had the following transactions involving current assets and current liabilities during February: Feb....

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Accounting

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Eugene Incorporated had the following transactions involving current assets and current liabilities during February: Feb. 1 Feb. 7 Feb. 11 Feb. 14 Feb. 18 Collected accounts receivable of $15,000 Purchased equipment for $25,000 cash Paid $3,000 for a 3-year insurance policy Paid accounts payable of $14,000 Declared cash dividends of $6,000 Additional Information: 1. As of February 1, current assets were $140,000 and the current liabilities were $50,000. As of February 1, current assets included $15,000 of inventory and $5,000 of prepaid expenses. 2. Instructions (a) (b) Compute the current ratio as of the beginning of the month and after each transaction. Compute the acid-test ratio as of the beginning of the month and after each transaction

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