Question 2.3:

After further investigation, your fears are confirmed, and you find one transaction that Lamia Scale forgot to record. Lamia Scale sold some obsolete inventory. This inventory had an original price of $65,000 but was sold for only $40,000. However, the company forgot to record this transaction. 

Calculate and record in the response template provided below what Lamia Scale's current ratio and quick ratio were before considering the impact of this transaction (i.e., as presented in the financial statements in Question 2.1) and what the current ratio and quick ratio will be after adjusting the accounting records to reflect the impact of this transaction. (5 marks)

Note: Round your answers to two decimal places and show your workings.

Hint: Please refer to Lamia Scale Ltd's Balance Sheet in Question 2.1.