Koto Corporation began the month of June with $300,000 of current assets, a current ratio of 2.5:1, and an acid-test ratio of 1.4:1. During the month, it completed the following transactions (the company uses a perpetual inventory system).

Required Prepare a table showing the company’s (1) current ratio, (2) acid-test ratio, and (3) working capital after each transaction. Round ratios to two decimals.

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June 1 Sold merchandise inventory that cost $75,000 for $120,000 cash. Collected $88,000 cash on an account receivable. 3 5 Purchased $150,000 of merchandise inventory on credit. 7 Borrowed $100,000 cash by giving the bank a 60-day, 10% note. 10 Borrowed $120,000 cash by signing a long-term secured note. 12 Purchased machinery for $275,000 cash. 15 Declared a $1 per share cash dividend on its 80,000 shares of outstanding common stock. 19 Wrote off a $5,000 bad debt against the Allowance for Doubtful Accounts account. 22 Paid $12,000 cash to settle an account payable. 30 Paid the dividend declared on June 15.