$7-13$ Wolfe Hospitality Consulting had the following transactions occur involving current assets and current liabilities during February $2008$:

Feb. $3$ Accounts receivable of $$15,000$ are collected.

$7$ Equipment is purchased for $$28,000$ cash.

$11$ Paid $$3,000$ for a three$-$year insurance policy.

$14$ Accounts payable of $$12,000$ are paid.

$18$ Cash dividends of $$5,000$ are declared.

Additional information:

As of February $1,2008,$ current assets were $$140,000,$ and current liabilities were $$50,000.$

As of February $1,2008,$ current assets included $$15,000$ of inventory and $$2,000$ of prepaid expenses.

Instructions

$($a$)$ Compute the current ratio as of the beginning of the month and after each transaction.

$($b$)$ Compute the acid$-$test ratio as of the beginning of the month and after each transaction.