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    Financial reporting question

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    Individual transactions often have a significant impact on ratios. This problem will consider the direction of such an impact.

    (See attached file.)

    Indicate the effects of the previous transactions on each of the following: total current assets, total current liabilities, net working capital, and current ratio. Use + to indicate an increase, - to indicate a decrease, and 0 to indicate no effect. Assume an initial current ratio of more than 1 to 1.

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    https://brainmass.com/business/accounting/transactions-impact-significant-ratios-318454

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    Solution Summary

    Transaction effects on total current assets, total current liabilities, net working capital, and current ratio is given in the attached Excel file.

    $2.19

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