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

Cash	$	72,000
Marketable securities	$	25,000
Accounts receivable, net	$	354,800
Inventory	$	465,200
Prepaid expenses	$	9,400
Accounts payable	$	203,600
Notes due within one year	$	104,000
Accrued liabilities	$	61,800

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 $15,630 for $10,420 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.
l.	Collected cash on accounts receivable, $82,200.

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. ltem (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. The Effect on Transaction Working Capital Current Ratio Acid-Test Ratio x. Paid a cash dividend previously declared a. Issued capital stock for cash b. Sold inventory at a gain c. Wrote off uncollectible accounts d. Declared a cash dividend e. Faid accounts payable f. Borrowed on a short-term note g. Sold inventory at a loss h. Purchased inventory on account . Paid short-term notes due j. Purchased equipment for cash k. Sold marketable securities at a loss |.Collected accounts receivable None Increase Increase