Data pertaining to the current position of Lucroy Industries Inc. are as follows: Cash - $402,500

Marketsble Securities - 177,500

Accounts and notes receivable (net) - 340,000

Inventories - 700,000

Prepaid Expenses - 42,000

Accounts payable - 180,000

Notes Payable (short term) - 240,000

Accrued Expenses - 290,000

Required:

1. Compute (a) the working capital, (b) the current ratio, and (c) the quick ratio. Round ratios to one decimal place.

a. Working capital	$
b. Current ratio
c. Quick ratio

2. Compute the working capital, the current ratio, and the quick ratio after each of the following transactions, and record the results in the appropriate columns. Consider each transaction separately and assume that only that transaction affects the data given above. Round ratios to one decimal place.

Transaction			Working Capital			Current Ratio			Quick Ratio
a. Sold marketable securities at no gain or loss, $80,000.	$
b. Paid accounts payable, $115,500.
c. Purchased goods on account, $120,000.
d. Paid notes payable, $115,000.
e. Declared a cash dividend, $150,000.
f. Declared a common stock dividend on common stock, $55,000.
g. Borrowed cash from bank on a long-term note, $200,000.
h. Received cash on account, $120,000.
i. Issued additional shares of stock for cash, $650,000.
j. Paid cash for prepaid expenses, $11,000.