Compute the following as of December 31, 2016 Working capital Current ratio Acid test ratio (Quick ratio) For 2017, indicate the effect of each of these transactions on working capital, current ratio, and acid test ratio of the company Increase, Decrease, or No Effect Consider each transaction independently Working Capital Current Ratio Acid Test Ratio a Purchased new plant assets for cash, $20,000 b Exchanged common stock for purchasing land Estimated value of transaction, $80,000 c Payment of $40,000 on short term notes payable d Sold short term marketable securities, that had a cost of $20,000, for $25,000 cash e Sold common stock for $70,000 in cash f Wrote off an account receivable in the amount of $2,000 g Declared a cash dividend in the amount of $5,000, to be paid later $100,000 Cash Short term Marketable $50,000 Securities $250,000 Accounts Receivables Less Allowance for Doubtful (20,000) $230,000 $300,000 $8,000 $200,000 $50,000 $10,000 $30,000 Accounts Inventory (LIFO based) Prepaid Expense Accounts Payable Short term Notes Payable Taxes Payable Accrued Liabilities

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Compute the following as of December 31, 2016: Working capital Current ratio Acid-test ratio (Quick ratio) For 2017, indicate the effect of each of these

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Compute the following as of December 31, 2016:

Working capital

Current ratio

Acid-test ratio (Quick ratio)

For 2017, indicate the effect of each of these transactions on working capital, current ratio, and acid-test ratio of the company. Increase, Decrease, or No Effect. Consider each transaction independently.

		Working Capital	Current Ratio	Acid-Test Ratio
a.	Purchased new plant assets for cash, $20,000.
b.	Exchanged common stock for purchasing land. Estimated value of transaction, $80,000.
c.	Payment of $40,000 on short-term notes payable.
d.	Sold short-term marketable securities, that had a cost of $20,000, for $25,000 cash.
e.	Sold common stock for $70,000 in cash.
f.	Wrote off an account receivable in the amount of $2,000.
g.	Declared a cash dividend in the amount of $5,000, to be paid later.

$100,000 Cash Short-term Marketable $50,000 Securities $250,000 Accounts Receivables Less: Allowance for Doubtful (20,000) $230,000 $300,000 $8,000 $200,000 $50,000 $10,000 $30,000 Accounts Inventory (LIFO-based) Prepaid Expense Accounts Payable Short-term Notes Payable Taxes Payable Accrued Liabilities