On December 31, 2011, Alcon Company's total current assets were $300,000 and its total current liabilities were $180,000. On January 1, 2012, Alcon paid $10,000 on accounts payable.
Required:
(a) Compute Alcon's working capital before and after paying the account payable.
(b) Compute Alcon's current ratio before and after paying the account payable.

Question

Quizplus · Accepted Answer

The Answer of On December 31, 2011, Alcon Company's total current assets were $300,000 and its total current liabilities were $180,000. On January 1, 2012, Alcon paid $10,000 on accounts payable.
Required:
(a) Compute Alcon's working capital before and after paying the account payable.
(b) Compute Alcon's current ratio before and after paying the account payable.

On December 31, 2011, Alcon Company's Total Current Assets Were