Indicate the effects of the transactions listed below on each of the following:

total current assets (CA), working capital (CA — CL), and the current ratio. Indi- cate an increase with >, a decrease with*, and no effect or effect cannot be determined with 0. Assume an initial current ratio of less than 1.0.

Total Working Current C.A. Capital Ratio 1. Sold capital stock for $5,000 cash.

2. Converted a short-term note payable to a long-term note.

3. Room sales for the day were $5,000.

Cash sales were $3,000 and the remainder was charged.

4. Capital stock was split 2 for 1.

5. Equipment was purchased on account.

6. Employees were paid for the month.

No amount had been accrued.

7. A guest paid $600 on account.

8. Sold land for more than its book value for

$10,000 cash and a three-year promissory note of $90,000.

9. Signed a long-term lease. No cash was paid and the lease was not capitalized.

10. Food for resale was purchased on account.

11. A 10 stock dividend was distributed to stockholders.

12. Utility expenses were paid. (They had been accrued for the prior month.)