Hermann Company reported these ratios at December 31, 2018 (dollar amounts in millions): Current ratio...
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Hermann Company reported these ratios at December 31, 2018 (dollar amounts in millions): Current ratio = $40 $30=1.33 Debt ratio = $40 $70 = 0.57 . . . Question content area top right Part 1 Hermann Company completed these transactions during 2019: LOADING... (Click the icon to view the transactions.) Read the requirement LOADING... . Question content area bottom Part 1 Requirement 1. Determine whether each transaction improved or hurt the company's current ratio and debt ratio. a. Purchased equipment on account, $6. (Review each transaction independently. Round calculations to two decimal places.) Current ratio = Debt ratio = current ratio debt ratio Part 2 b. Paid long-term debt, $8. Current ratio = Debt ratio = current ratio debt ratio Part 3 c. Collected cash from customers in advance, $2. Current ratio = Debt ratio = current ratio debt ratio Part 4 d. Accrued interest expense, $1. Current ratio = Debt ratio = current ratio debt ratio Part 5 e. Made cash sales, $6. Current ratio = Debt ratio = current ratio debt ratio
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