Data pertaining to the current position of Boole Company are as follows:

Cash $240,000

Temporary investments 120,000

Accounts and notes receivable (net) 360,000

Inventories 380,000

Prepaid expenses 20,000

Accounts payable 140,000

Notes payable (short-term) 200,000

Accrued expenses 60,000

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 ratioafter each of the

following transactions, and record the results in the appropriatecolumns. Consider

each transaction separately and assume that only that transactionaffects the data

given above. Round to one decimal place.

a. Sold temporary investments at no gain or loss, $45,000.

b. Paid accounts payable, $80,000.

c. Purchased goods on account, $50,000.

d. Paid notes payable, $100,000.

e. Declared a cash dividend, $80,000.

f. Declared a common stock dividend on common stock, $22,500.

g. Borrowed cash from bank on a long-term note, $200,000.

h. Received cash on account, $67,500.

i. Issued additional shares of stock for cash,