Effect of Transactions on Current Position Analysis Data pertaining to the current position of Newlan Company are as follows: Cash $273,500 Temporary investments 140,900 Accounts and notes receivable (net) 414,400 Inventories 492,100 Prepaid expenses 25,900 Accounts payable 181,300 Notes payable (short-term) 259,000 77,700 Accrued expenses Instructions: 1. Compute (a) the working capital, (b) the current ratio, and (c) the quick ratio. Round the current ratio and the quick ratio to one decimal place. Working capital $1 Current ratio Quick ratio 828,800 2.6 1.6 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 above. Format working capital as whole dollars. Round the current ratio and the quick ratio to one decimal place. Working Capital Current Ratio Quick Ratio 828,800 828,800 828,800 828,800 724,800 Transaction a. Sold temporary investments for cash at no gain or loss, $58,000. b. Paid accounts payable, $104,000. c. Purchased goods on account, $65,000. d. Paid notes payable, $129,500. e. Declared a cash dividend, $104,000. f. Declared a stock dividend on common stock, $31,000. g. Borrowed cash from bank on a long- term note, $259,000. h. Received cash on account, $88,000. i. Issued additional shares of stock for cash, $518,000. j. Paid cash for prepaid expenses, $51,800 859,800 1,087,800 $ 828,800 1,346,800 828,800 2.6