Effect of transactions on liquidity measures

Selected balance sheet accounts for Tibbets Company on September 30, 2010, are as follows:

Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $32,000

Marketable Securities. . . . . . . . . . . . . . . 58,000

Accounts Receivable. . . . . . . . . . . . . . . . 86,000

Prepaid Expenses. . . . . . . . . . . . . . . . . . 14,000

Total Current Assets. . . . . . . . . . . . . $280,000

Accounts Payable. . . . . . . . . . . . . . . . . $98,000

Other Accrued Liabilities. . . . . . . . . . . 22,000

Short-Term Debt. . . . . . . . . . . . . . . . . 40,000

Total Current Liabilities. . . . . . . . . $160,000

Required:

a. Calculate the working capital, current ratio, and acid-test ratio for Tibbetts Company as of September 30, 2010.

b. Summarized here are the transactions/events that took place during the fiscal year ended September 30, 2011. Indicate the effect of each item on Tibbetts Company