Page Corporation began the month of May with $884,000 of current assets, a current ratio of 2.6:1, and an acid-test ratio of 1.5:1. During the month, it completed the following transactions (the company uses a perpetual inventory system).
May 2 Purchased $70,000 of merchandise inventory on credit.
8 Sold merchandise inventory that cost $60,000 for $130,000 cash.
10 Collected $30,000 cash on an account receivable.
15 Paid $31,000 cash to settle an account payable.
17 Wrote off a $5,000 bad debt against the Allowance for Doubtful Accounts account.
22 Declared a $1 per share cash dividend on its 67,000 shares of outstanding common stock.
26 Paid the dividend declared on May 22.
27 Borrowed $85,000 cash by giving the bank a 30-day, 10% note.
28 Borrowed $100,000 cash by signing a long-term secured note.
29 Used the $185,000 cash proceeds from the notes to buy new machinery.
Required
Prepare a table showing Page’s (1) current ratio, (2) acid-test ratio, and (3) working capital, after each transaction. Round ratios to two decimals.