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

Cash	$	61,000
Marketable securities	$	28,300
Accounts receivable, net	$	328,400
Inventory	$	436,600
Prepaid expenses	$	6,200
Accounts payable	$	183,800
Notes due within one year	$	82,000
Accrued liabilities	$	51,900

During the year, Denna Company completed the following transactions:

x.	Paid 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, $21,000.
e.	Paid accounts payable, $85,600.
f.	Borrowed cash on a short-term note with the bank, $46,500.
g.	Sold inventory costing $20,250 for $13,500 cash.
h.	Purchased inventory on account, $43,250.
i.	Paid 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.
l.	Collected cash on accounts receivable, $70,100.

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.