720 Chapter 14 Financial Statement Analysis PR 14-3B Effect of transactions on current position analysis Data pertaining to the current position of Lucy Industries Inc. follows: 2. G. Quick ratio, 1.6 EXCEL TEMPLATE Cash Marketable securities Accounts and notes receivable (net) Inventories Prepaid expenses Accounts payable Notes payable (short-term) Accrued expenses $ 800,000 550,000 850,000 700,000 300,000 1,200,000 700,000 100,000 Instructions 1. Compute (A) the working capital, (B) the current ratio, and (c) the quick ratio. (Round to one decimal place.) 2. List the following captions on a sheet of paper: Transaction Working Capital Current Ratio Quick Ratio Compute the working capital, the current ratio, and the quick ratio after each of the follow ing transactions, and record the results in the appropriate columns. Consider each transae Hon separately and assume that only that transaction affects the data given. Round to one decimal place.) A. Sold marketable securities at no gain or loss, $500,000 B. Paid accounts payable, $287,500 C. Purchased goods on account: 09,000, D. Paid notes payable, $125,000 E. Declared a cash dividend, 5325,000 F. Declared a common stock dividend on common stock, 5150,000 G. Borrowed cash from bank on a long-term note, $1,000,000 H. Received cash on account, $75,000. I. Issued additional shares of stock for cash, $2,000,000 J. Paid cash for prepaid expenses, $200,000. Current Ratio - 16 Quick Ratio Quick Anal CumentLab $2,200,000 $2.000.000 Quick Ratio - Current Assets Current Lades Working Capital Current Radio S 1200,000 1200,000 875 000 2.200.000 1.200.000 3,200000 1,200,000 52 Pr. 14-1B Pc 14-2B Pr. 14-3B Read