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24 November, 19:13

Evans Inc. had current liabilities at April 30 of $74,100. The firm's current ratio at that date was 1.7. Required:Calculate the firm's current assets and working capital at April 30. Assume that management paid $17,200 of accounts payable on April 29. Calculate the current ratio and working capital at April 30 as if the April 29 payment had not been made. (Round "Current ratio" answer to 2 decimal places.)

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  1. 24 November, 19:38
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    Answer: Current asset S10,586

    Working capital is-S63,514

    Current ratio 1 to 7

    Explanation:

    Current ratio = current assets to current liability = 1 ... 7

    1.7=x to 74100

    1/7=x/74100

    7x=74100

    X=74100/7

    Current asset=S10,586

    Working capital is current assets minus current liability

    S10,586 minus S74100

    Working capital is - S63,514

    Current ratio if the payment has not been made is 1 to 7
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