Effect of Transactions on Current Position Analysis Data pertaining to the current position of Lucroy Industries Inc. follow: Cash $420,000 Marketable securities 185,000 Accounts and notes receivable (net) 335,000 Inventories 750,000 Prepaid expenses 48,000 Accounts payable 190,000 Notes payable (short-term) 255,000 Accrued expenses 305,000 Required: 1. Compute (a) the working capital, (b) the current ratio, and (c) the quick ratio. Round ratios to one decimal place. a. Working capital $ 988,000 b. Current ratio 2.3 c. Quick ratio 1.3 2. Compute the working capital, the current ratio, and the quick ratio after each of the following transactions and record the results in the appropriate columns. Consider each transaction separately and assume that only that transaction affects the data given. Round ratios to one decimal place. Transaction Working Capital Current Ratio Quick Ratio Transaction Working Capital Current Ratio Quick Ratio a. Sold marketable securities at no gain or loss, $50,000. $ 938,000 2.3 1.9 b. Paid accounts payable, $115,000. $ 1,103,000 2.7 1.5 c. Purchased goods on account, $110,000. $ 1,433,000 2.9 1.4 d. Paid notes payable, $110,000. $ 1,133,000 2.9 1.6 e. Declared a cash dividend, $ 155,000. 678,000 1.8 Accounting numeric fi- f. Declared a common stock dividend on common stock, $55,000. $ g. Borrowed cash from bank on a long-term note, $220,000. $ h. Received cash on account, $120,000. $ 988,000 2.3 1.3 I. Issued additional shares of stock for cash, $605,000. $ j. Paid cash for prepaid expenses, $11,000. $ 768,000 2.0