On June 30, 2018, Thornton Companys total current assets were $499,500 and its total current...
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Accounting
On June 30, 2018, Thornton Companys total current assets were $499,500 and its total current liabilities were $275,000. On July 1, 2018, Thornton issued a long-term note to a bank for $40,200 cash.
Required
Compute Thorntons working capital before and after issuing the note.
Compute Thorntons current ratio before and after issuing the note. (Round your answers to 1 decimal place.)
Before the transaction
After the transaction
a.
Working Capital
b.
Current Ratio
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