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 $18,570 for $12,380 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.

Compute the following amounts and ratios as of the beginning of the year

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.

Denna Campany'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 S 69,000 S 25,900 347,800 S 457,400 S 7,B00 S 198,200 S 98,000 S 59,100 x. Paid cash dividend previously declared, S29,000. a. Issued additional shares of camman stock for cash, $198,000. b. Sold inventory costing $89,200 for $99,000, an account c. Wrote aff uncallectible accounts in the amaunt af $9,600, reducing the accounts receivable balance accordingly. d. Declared a cash dividend, $29,000. e. Paid aocounts payable $98.400. . Borrowed cash on a shart-term note with the bank, $58,500 g. Sold inventory costing $18,570 for $12,380 cash. h. Purchased inventory on account, $49,250 Paid off all short-term nates due, $156,500. Purchased equipment for cash, $74,200 Sold marketable securities costing $15,900 for cash, $13,250. Collected cash on accounts receivable, $78,900. L Required: 1. Compute the fallowing amounts and ratios as of the beginning af the year: (Round your ratios to2 declmal placee.) Working capital b Current rato . Acid-test ratio 2Indicate the effect of each of the transactions given abave on working capital, the current ratio, and the acid-test ratio. Give the effect in berms of increase, decrease, ar none. em (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 Working Capltal Current Ratio Acld-Test Ratlo Traneaction x. Paid a cash dividernd previausly declared Nane a Issued capital stock for cash b Sold inventory at a gain Increase Increase d Declared a cash dividend Paid accounts payable f Borrowed on a shorl-term nate h. Purchased inventary on account Collected accounts receivable