Plum Corporation began the month of May with $700,000 of current assets, a current ratio of 2.50:1,

Question:

Plum began the month of May with $700,000 of current assets, a current ratio of 2.50:1, and an acid-test ratio of 1.10:1. During the month, it completed the following transactions (the company uses a perpetual inventory system).
May 2 Purchased $50,000 of merchandise inventory on credit.
8 Sold merchandise inventory that cost $55,000 for $110,000 cash.
10 Collected $20,000 cash on an account receivable.
15 Paid $22,000 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 on its 50,000 shares of outstanding common stock.
26 Paid the declared on May 22.
27 Borrowed $100,000 cash by giving the bank a 30-day, 10% note.
28 Borrowed $80,000 cash by signing a long-term secured note.
29 Used the $180,000 cash proceeds from the notes to buy new machinery.
Required
Prepare a table, similar to the following, showing Plum's (1) current ratio, (2) acid-test ratio, and (3) working capital after each transaction. Round ratios to two decimals.

Plum Corporation began the month of May with $700,000 of

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