#16.

\begin{tabular}{|c|c|c|c|c|c|c|c|c|c|} \hline \multirow{2}{*}{\begin{tabular}{l} Transaction \\ Beginning \end{tabular}} & \multicolumn{2}{|c|}{ Current Assets } & \multicolumn{2}{|c|}{ Quick Assets } & Current Liabilities & \multirow{2}{*}{\begin{tabular}{|r|} Current Ratio \\ 2.50 \end{tabular}} & \multirow{2}{*}{\begin{tabular}{r} Acid-Test Ratio \\ 1.50 \end{tabular}} & \multicolumn{2}{|c|}{ Working Capital } \\ \hline & $ & 800,000 & $ & 480,000 & 320,000 & & & $ & 480,000 \\ \hline \multicolumn{10}{|l|}{ May 2} \\ \hline \multicolumn{10}{|l|}{ May 2} \\ \hline \multicolumn{10}{|l|}{ Balance after May 2} \\ \hline \multicolumn{10}{|l|}{ May 8} \\ \hline \multicolumn{10}{|l|}{ May 8} \\ \hline \multicolumn{10}{|l|}{ Balance after May 8} \\ \hline \multicolumn{10}{|l|}{ May 10} \\ \hline \multicolumn{10}{|l|}{ May 10} \\ \hline \multicolumn{10}{|l|}{ Balance after May 10} \\ \hline \multicolumn{10}{|l|}{ May 15} \\ \hline \multicolumn{10}{|l|}{ May 15} \\ \hline \multicolumn{10}{|l|}{ Balance after May 15} \\ \hline \multicolumn{10}{|l|}{ May 17} \\ \hline \multicolumn{10}{|l|}{ May 17} \\ \hline \multicolumn{10}{|l|}{ Balance after May 17} \\ \hline \multicolumn{10}{|l|}{ May 22} \\ \hline \multicolumn{10}{|l|}{ May 22} \\ \hline \multicolumn{10}{|l|}{ Balance after May 22} \\ \hline \multicolumn{10}{|l|}{ May 26} \\ \hline \multicolumn{10}{|l|}{ May 26} \\ \hline \multicolumn{10}{|l|}{ Balance after May 26} \\ \hline May 27 & & & & & & & & & \\ \hline May 27 & & & & & & & & & \\ \hline Balance after May 27 & & & & & & & & & \\ \hline May 28 & & & & & & & & & \\ \hline May 28 & & & & & & & & & \\ \hline Balance after May 28 & & & & & & & & & \\ \hline May 29 & & & & & & & & & \\ \hline May 29 & & & & & & & & & \\ \hline Balance after May 29 & & & & & & & & & \\ \hline \end{tabular} Problem 13-3A (Algo) Transactions, working capital, and liquidity ratios LO P3 Plum Corporation began the month of May with $800,000 of current assets, a current ratio of 2.50:1, and an acid-test ratio of 1.50:1. During the month, it completed the following transactions (the company uses a perpetual inventory system). May 2 Purchased $65,000 of merchandise inventory on credit. May 8 Sold merchandise inventory that cost $55,000 for $135,000 cash. May 10 Collected $21,000 cash on an account receivable. May 15 Paid $29,500 cash to settle an account payable. May 17 Wrote off a $5,000 bad debt against the Allowance for Doubtful Accounts account. May 22 Declared a $1 per share cash dividend on its 67,000 shares of outstanding common stock. May 26 Paid the dividend declared on May 22. May 27 Borrowed $115,000 cash by giving the bank a 30 -day, 10% note. May 28 Borrowed $145,000 cash by signing a long-term secured note. May 29 Used the $260,000 cash proceeds from the notes to buy new machinery. Required: Complete the table below showing Plum's (1) current ratio, (2) acid-test ratio, and (3) working capital after each transaction. Note: Do not round intermediate calculations. Round your ratios to 2 decimal places and the working capitals to nearest dollar amount. Amounts to be deducted should be indicated with a minus sign