Denna Companys working capital accounts at the beginning of the year follow:

Cash	$	79,000
Marketable securities	$	23,800
Accounts receivable, net	$	371,600
Inventory	$	483,400
Prepaid expenses	$	14,300
Accounts payable	$	216,200
Notes due within one year	$	118,000
Accrued liabilities	$	68,100

During the year, Denna Company completed the following transactions:

x.	Paid a cash dividend previously declared, $39,000.
a.	Issued additional shares of common stock for cash, $218,000.
b.	Sold inventory costing $77,200 for $109,000, on account.
c.	Wrote off uncollectible accounts in the amount of $13,600, reducing the accounts receivable balance accordingly.
d.	Declared a cash dividend, $39,000.
e.	Paid accounts payable, $114,400.
f.	Borrowed cash on a short-term note with the bank, $73,500.
g.	Sold inventory costing $17,100 for $11,400 cash.
h.	Purchased inventory on account, $56,750.
i.	Paid off all short-term notes due, $191,500.
j.	Purchased equipment for cash, $82,200.
k.	Sold marketable securities costing $13,800 for cash, $11,500.
l.	Collected cash on accounts receivable, $89,900.

Required:

1.	Compute the following amounts and ratios as of the beginning of the year: (Round your ratios to 2 decimal places.)

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.

a. Working capital b. Current ratio c. Acid-test ratio