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

Cash	$	69,000
Marketable securities	$	25,900
Accounts receivable, net	$	347,600
Inventory	$	457,400
Prepaid expenses	$	7,800
Accounts payable	$	198,200
Notes due within one year	$	98,000
Accrued liabilities	$	59,100

During the year, Denna Company completed the following transactions:

x.	Paid a cash dividend previously declared, $29,000.
a.	Issued additional shares of common stock for cash, $198,000.
b.	Sold inventory costing $69,200 for $99,000, on account.
c.	Wrote off uncollectible accounts in the amount of $9,600, reducing the accounts receivable balance accordingly.
d.	Declared a cash dividend, $29,000.
e.	Paid accounts payable, $98,400.
f.	Borrowed cash on a short-term note with the bank, $58,500.
g.	Sold inventory costing $19,800 for $13,200 cash.
h.	Purchased inventory on account, $49,250.
i.	Paid off all short-term notes due, $156,500.
j.	Purchased equipment for cash, $74,200.
k.	Sold marketable securities costing $15,900 for cash, $13,250.
l.	Collected cash on accounts receivable, $78,900.

Required:

1.	Compute the following amounts and ratios as of the beginning of the year: (Round your ratios to 2 decimal places.)

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.