1.)

Denna Company's working capital accounts at the beginning of the year follow: Cash $ 75,000 Marketable securities $ 22, 600 Accounts receivable, net $ 362,000 Inventory $ 473,060 Prepaid expenses $ 11, 500 Accounts payable $ 209,000 Notes due within one year $ 110, 000 Accrued liabilities $ 64,500 During the year, Denna Company completed the following transactions: x. Paid a cash dividend previously declared, $35,000. a. Issued additional shares of common stock for cash, $210,000. b. Sold inventory costing $74,000 for $105,000, on account c. Wrote off uncollectible accounts in the amount of $12,000, reducing the accounts receivable balance accordingly. d. Declared a cash dividend, $35,000. . Paid accounts payable, $108,000 f. Borrowed cash on a short-term note with the bank, $67,500. g. Sold inventory costing $16,500 for $11,000 cash. h. Purchased inventory on account, $53,750. i. Paid off all short-term notes due, $177,500. j. Purchased equipment for cash, $79,000 k. Sold marketable securities costing $12,600 for cash, $10,500. 1. Collected cash on accounts receivable, $85,500. Required: 1. Compute the following amounts and ratios as of the beginning of the year: a. Working capital. b. Current ratio. C. Acid-test ratio. 2. Indicate the effect of each of the transactions given above on working capital, the current ratio, and the acid-test ratio. Give the effect in terms of increase, decrease, or none. Item (x) is given as an example. Consider each transaction independently and indicate their effects as compared to the ratios and amounts at the beginning of the period. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the following amounts and ratios as of the beginning of the year: (Round your ratios to 2 decimal places.) a. Working capital b. Current ratio c. Acid-test ratioRequired: 1. Compute the following amounts and ratios as ofthe beginning ofthe year: a. Working capital. to. Current ratio. c. Acidtest ratio. 2. Indicate the effect of each ofthe transactions given above on working capital, the current ratio, and the acid-test ratio. Give the effect in terms ofincrease, decrease, or none. Item (x) is given as an example. Consider each transaction independently and indicate their effects as compared to the ratios and amounts at the beginning of the period. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Indicate the effect of each of the transactions given above on working capital, the current ratio, and the acidtest ratio. Give the effect in terms of increase, decrease, or none. Item (x) is given as an example. Consider each transaction independently and indicate their effects as compared to the ratios and amounts at the beginning of the period. x. Paid a cash dividend previously declared None Increase Increase a. issued additional shares of common stock for cash b. Sold inventory at a gain c. Wrote off uncollectible accounts d. Declared a cash dividend e. Paid accounts payable f. Borrowed on a shortterm note g. Sold inventory at a loss h. Purchased inventory on account i. Paid shortterm notes j Purchased equipment for cash k. Sold marketable securities at a loss |. Collected accounts receivable