accounting queston 1

User Generated

obfpbif2014

Business Finance

Description

i am stuck on this problem. here is a pic of the problem

http://imgur.com/UnvzXfO

any help would be appreciated

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Explanation & Answer

Capital after transaction = Assets - liability

A= 250,000 - C= 150,000

C= 100,000


b) Current ratio = current assets/ current liability


before

Current ratio = 250,000/ 125,000

= 2

After

250,000/150,000

1.7


Anonymous
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