Denna Company's working capital accounts at the beginning of the year follow:

During the year, Denna Company completed the following transactions:

x$.$ Paid a cash dividend previously declared, $$32,000.$

a$.$ Issued additional shares of common stock for cash, $$204,000.$

b$.$ Sold inventory costing $$71,600$ for $$102,000,$ on account.

c$.$ Wrote off uncollectible accounts in the amount of $$10,800,$ reducing the accounts receivable balance accordingly.

d$.$ Declared a cash dividend, $$32,000.$

e$.$ Paid accounts payable, $$103,200.$

f$.$ Borrowed cash on a short$-$term note with the bank, $$63,000.$

g$.$ Sold inventory costing $$15,600$ for $$10,400$ cash.

h$.$ Purchased inventory on account, $$51,500.$

i$.$ Paid off all short$-$term notes due, $$167,000.$

j$.$ Purchased equipment for cash, $$76,600.$

k$.$ Sold marketable securities costing $$15,000$ for cash, $$12,500.$

I. Collected cash on accounts receivable, $$82,200.$

Required:

Compute the following amounts and ratios as of the beginning of the year:

a$.$ Working capital.

b$.$ Current ratio.

c$.$ Acid$-$test ratio.

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.

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Indicate the effect of each of the transactions given above on working capital, the current ratio, and the acid$-$test ratio. Give th

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.