Marsulex Inc. began the month of March with $750,000 of current assets, a current ratio of 2.5 to 1, and an acid-test ratio of 1.1 to 1. During the month, it completed the following transactions:

Required
Prepare a schedule showing Marsulex Inc.€™s current ratio, acid-test ratio, and working capital after each of the transactions. Round calculations to two decimalplaces.

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Mar. 6 Bought 585,000 of merchandise on account. (The company uses a perpetual inventory system.) Sold merchandise that cost $68,000 for $113,000. Collected a $29,000 account receivable. Paid a $31,000 account payable. Wrote off a $13,000 bad debt against Allowance for Doubtful Accounts. Declared a $1.25 per share cash dividend on the 40,000 outstanding common shares. Paid the dividend declared on March 24. Borrowed $85,000 by giving the bank a 30-day, 10% note Borrowed $100,000 by signing a long-term secured note. Used the $185,000 proceeds of the notes to buy additional machinery 11 15 17 19 24 28 29 30 31