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

Cash	$	76,000
Marketable securities	$	22,900
Accounts receivable, net	$	364,400
Inventory	$	475,600
Prepaid expenses	$	12,200
Accounts payable	$	210,800
Notes due within one year	$	112,000
Accrued liabilities	$	65,400

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 receivable balance accordingly.
d.	Declared a cash dividend, $36,000.
e.	Paid accounts payable, $109,600.
f.	Borrowed cash on a short-term note with the bank, $69,000.
g.	Sold inventory costing $16,470 for $10,980 cash.
h.	Purchased inventory on account, $54,500.
i.	Paid off all short-term notes due, $181,000.
j.	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: (Round your ratios to 2 decimal places.)

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.