*Exercise 18-6 Keener Incorporated had the following transactions occur involving current assets and current liabilities...
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*Exercise 18-6 Keener Incorporated had the following transactions occur involving current assets and current liabilities during February 2017. Feb. 3 Accounts receivable of $14,300 are collected. Equipment is purchased for $27,500 cash. 7 Paid $2,400 for a 1-year insurance policy. 11 Accounts payable of $12,200 are paid. 14 Cash dividends of $4,900 are declared. 18 Additional information: As of February 1, 2017, current assets were $134,200, and current liabilities were $49,000. 1. As of February 1, 2017, current assets included $14,500 of inventory and $2,900 2. of prepaid expenses (a) Compute the current ratio as of the beginning of the month and after each transaction. (b) Compute the acid-test ratio as of the beginning of the month and after each transaction. (Round answers to 1 decimal place, e.q. 1.6.) Current ratio Acid-test ratio February 1 : 1 : 1 February 3 :1 :1 February 7 :1 1 February 11 :1 :1 February 14 :1 1 February 18 : 1 :1
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