Essay
On December 31, 2013, Houston Company's total current assets were $560,000 and its total current liabilities were $420,000. On January 1, 2014, Houston issued a long-term note to a bank for $30,000 cash.
Required:
(a) Compute Houston's working capital before and after issuing the note payable.
(b) Compute Houston's current ratio before and after issuing the note payable. Round your answer to two decimal places.
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(a) Working capital before issuing note ...View Answer
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