Plum Corporation 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 dividend on the 50,000 shares of outstanding common stock.
26 Paid the dividend 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 showing Plum’s (1) current ratio, (2) acid-test ratio, and (3) working capital, after each transaction. Round ratios to hundredths.AppendixLO1