ch 15 q.5

During the year, Denna Company completed the following transactions: X. Pald a cash dividend previously declared, $21,000. a. Issued additional shares of common stock for cash, $182,000. b. Sold Inventory costing $62,800 for $91,000, on account. c. Wrote off uncollectible accounts in the amount of $6.400, reducing the accounts receivable balance accordingly. d. Declared a cash dividend, 521.000. e. Pald accounts payable, $85,600. f. Borrowed cash on a short-term note with the bank. $46,500. g. Sold Inventory costing $22,200 for $14.800 cash. h. Purchased Inventory on account, $43,250. 1. Pald off all short-term notes due. $128,500. J. Purchased equipment for cash. $67,800. k. Sold marketable securities costing $18,300 for cash, $15,250. 1. Collected cash on accounts receivable, $70,100. Required: 1. Compute the following amounts and ratios as of the beginning of the year: 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 erms 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 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 (Required 1 Required 2 > Required: 1. Compute the following amounts and ratlos as of the beginning of the year: 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. Complete this question by entering your answers in the tabs below. Required 1 Required 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. Working Capital None The Effect on Current Ratio Increase Acid-Test Ratio Increase Transaction x. Paid a cash dividend previously declared a. Issued additional shares of common stock for cash b. Sold inventory at a gain c. Wrote off uncollectible accounts d. Declared a cash dividend e. Paid accounts payable 1Borrowed on a short-term note 9. Sold inventory at a loss h. Purchased inventory on account Paid short-term notes i Purchased equipment for cash k. Sold marketable securities at a loss 1. Collected accounts receivable