Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses Accounts payable Notes due within one year Accrued liabilities S 78,000 S 23,500 S 369,200 S 480,800 S 13,600 S 214,400 S 116,000 S 67,200 During the year, Denna Company completed the following transactions x. Paid a cash dividend previously declared, $38,000 a. Issued additional shares of common stock for cash, $216,000 b. Sold inventory costing $76,400 for $108,000, on account c. Wrote off uncollectible accounts in the amount of $13,200, reducing the accounts receivable balance accordingly d. Declared a cash dividend, $38,000 e. Paid accounts payable, $112,800 . Borrowed cash on a short-term note with the bank, $72,000 g. Sold inventory costing $16,890 for $11,260 cash h. Purchased inventory on account, $56,000 i. Paid off all short-term notes due, $188,000. j. Purchased equipment for cash, $81,400 k. Sold marketable securities costing $13,500 for cash, $11,250 I. Collected cash on accounts receivable, $88,800 Required 1. 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 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 The Effect on Transaction x. Paid a cash dividend previously declared None a. Issued capital 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 short-term note g. Sold inventory at a loss h. Purchased inventory on account i. Paid short-term notes due j. Purchased equipment for cash k. Sold marketable securities at a loss l. Collected accounts receivable Working Capital Acid-Test Ratio Increase Increase