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Analyzing the Impact of Selected Transactions on the Current Ratio - Current assets for London Corporation totaled $410,000 and the current ratio was 2.0. Assume that the following transactions were completed: (1) sold $11,000 in merchandise on short-term credit, (2) declared but did not pay dividends of $50,000, (3) paid prepaid rent in the amount of $12,000, (4) paid previously declared dividends in the amount of $50,000, (5) collected an account receivable in the amount of $11,000, and (6) reclassified $30,000 of long-term debt as a short-term liability.
Required:
Compute the cumulative current ratio after each transaction.
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