The balance sheet of Mister Ribs Restaurant reports current assets of $60,000 and current liabilities of $30,000. Required: Calculate the current ratio of Mister Ribs Restaurant and determine whether it will increase or decrease as a result of the following transactions. Consider each item, (a) to (d), independent of the others. a. Paid $4,500 cash for a new oven. b. Received a $4,500 cash contribution from an investor for the company's common stock. c. Borrowed $18,600 cash from a bank, issuing a note that must be repaid in three years. d. Purchased $1,500 of napkins, paper cups, and other disposable supplies on account. Complete this question by entering your answers in the tabs below.

The balance sheet of Mister Ribs Restaurant reports current assets of $60,000 and current liabilities of $30,000. Required: Calculate the current ratio of Mister Ribs Restaurant and determine whether it will increase or decrease as a result of the following transactions. Consider each item, (a) to (d), independent of the others. a. Paid $4,500 cash for a new oven. b. Received a $4,500 cash contribution from an investor for the company's common stock. c. Borrowed $18,600 cash from a bank, issuing a note that must be repaid in three years. d. Purchased $1,500 of napkins, paper cups, and other disposable supplies on account. Complete this question by entering your answers in the tabs below.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 60P

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