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3 Plum Corporation began the month of May with $600,000 of current assets, a current ratio of 2.10:1, and an acid-test ratio of 1.60:1. During

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3 Plum Corporation began the month of May with $600,000 of current assets, a current ratio of 2.10:1, and an acid-test ratio of 1.60:1. During the month, It completed the following transactions (the company uses a perpetual inventory system). 2.5 points May 2 Purchased $65,000 of nerchandise inventory on eredit. 8 sold merchandise inventory that cost $65,000 for $120,000 canh. 10 Collected $28,000 cash on an account receivable. 15 Paid $28,000 cash to settle an account payable. 17 Wrote off a $5,000 bad debt againat the Allovance for Doubtful Aecounts account 22 Declared a $1 per share cash dividend on its 66,000 shares of outstanding comnon stock. 26 Paid the dividend declared on May 22. 27 Borroved $100,000 cash by giving the bank a 30-day, 10t note. 28 Borroved $115,000 cash by aigning a long-tern secured note. 29 Used the $215,000 cash proceeds fron the notes to buy new machinery Complete the table below showing Plum's () current ratio, (2) acid-test ratio, and (3) working capital after each transaction. (Do not round intermediate calculations. Round your ratios to 2 decimal places and the working capitals to nearest dollar amount. Subtracted amount should be indicated with a minus sign.) Complete the table below showing Plum's (1) current ratio, (2) acid-test ratio, and (3) working capital after each transaction. (Do not round intermediate calculations. Round your ratios to 2 decimal places and the working capitals to nearest dollar amount Subtracted amount should be indicated with a minus sign.) Answer is not complete. Current Assets Quick Assets Current Liabilities Current Ratio Acid-Test Ratio 600,000 S 457,143 $ 285,714 1.60 314.286 Beginning May 2 65,000 I 457,143 1 300 314 2860| Balance 600,000 350,714 1.90 May 8 20,000 120,000 720,000 2800028,000 Balance 577,143 350,714 2.05 1.650 | 369,286> May 10 748,000 605,4 3071420369 280 Balance 605,143 350,714 May 15 (28000(80(28,000) Balance 720,000 577,143 322,714 2.14 170 369.286 May 17 (5,000)3(5,000) 214 170 69,286 Balance 715,000 572,143 22,714 May 22 6,000 388,714 Balance 715,000 572,143 .780111141303,286 May 26 (66,000)(66,000)( (66,000) 322,714 Balance 649,000 506,143 .94 .501303,286 May 27 100,000 100,000 100,000 o 749,000 606,143 422,714 1.72 1.38303,286 May 28 115,000 115,000 721,143 0 418,2860 864,000 422,714 1.99 1.65 May 29 (215,000) Balanc 649,000 721,143 422,714 1.991653S 418,.2863

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