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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

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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, $36,000. a. Issued additional shares of common stock for cash, \$212,000. b. Sold inventory costing $74,800 for $106,000, on account. c. Wrote off uncollectible accounts in the amount of $12,400, reducing the accounts recelvable balance accordingly. d. Declared a cash dlvidend, $36,000. e. Poid accounts payable, $109.600. 1. Borrowed cash on a short-term note with the bank, $69,000. 9. Sold inventory costing $16.800 for $11,200 cash. h. Purchased inventory on account, $54,500. 1. Paid off all shortterm notes due, $181,000. 1. Purchased equipment for cash, $79,800. k. Sold marketable securities costing $12.900 for cash, $10.750. 1. Collected cash on accounts receivable, $86,600. 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. 2. Indicate the effect of each of the transactions glven 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. 1. Purchased equipment for cash, $79,800. k. Sold marketable securities costing $12,900 for cash, $10,750. l. Collected cash on accounts receivable, $86,600. 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. 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. Complete this question by entering your answers in the tabs below. Compute the following amounts and ratios as of the beginning of the year: (Round your fatios to 2 decimal piaces.) 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 indical their effects as compared to the ratios and amounts at the beginning of the period. Complete this question by entering your answers in the tabs below. 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 glven 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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