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Denna Company's working capital accounts at the beginning of the year follow Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses Accounts payable Notes due

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Denna Company's working capital accounts at the beginning of the year follow Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses Accounts payable Notes due within one year Accrued liabilities $ 85,00 $ 25,600 $ 386,000 $ 499,000 $ 18, See $ 227,000 $ 130,000 $ 73,5ee Book rences During the year, Denna Company completed the following transactions: x. Pald a cash dividend previously declared, $45.000 a. Issued additional shares of common stock for cash. $230,000. b. Sold Inventory costing $82,000 for $115,000, on account Wrote off uncollectible accounts in the amount of $16,000, reducing the accounts receivable balance accordingly, d. Declared a cash dividend. $45,000. e. Pald accounts payable. $124,000. 1. Borrowed cash on a short-term note with the bank, $82.500 g. Sold Inventory costing $19.500 for $13.000 cash. h. Purchased Inventory on account. $61,250. 1. Pald off all short-term notes due, $212,500 J. Purchased equipment for cash $87,000. k. Sold marketable securities costing $15.600 for cash, $13,000. 1. Collected cash on accounts receivable. $96,500 Required: 1. Compute the following amounts and ratios as of the beginning of the year a. Working capital 5 Required: 1. Compute the following amounts and ratios as of the beginning of the year a Working capital b. Current ratio c. Acid-test ratio 142 points eBook 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() is given as an example. Consider each uansaction independently and indicate their effects as compared to the ratios and amounts at the beginning of the period. References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the following amounts and ratios as of the beginning of the year (Round your ratios to 2 decimal places 2. Worlong capes b. Currentrato Red-estrado Required 2 > M

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