Effect of Transactions on Working Capital, Current Ratio, and Quick Ratio The following account balances are taken from the records of Redon Corp.: Cash Short-term investments Accounts receivable Inventory Prepaid Insurance Accounts payable Taxes payable Salaries and wages payable Short-term loans payable Required: $69,000 58,000 72,000 100,000 10,000 75,000 25,000 40,000 210,000 1. Use the information provided to compute the amount of working capital and Redon's current and quick ratios (round to three decimal points). Use the minus sign to Indicate a negative working capital Working capital Current ratio Quick ratio 2. Determine the effect that each of the following transactions will have on Redon's working capital, current ratio, and quick ratio by recalculating each and then indicating whether the measure is increased, decreased, or not affected by the transaction. Consider each transaction Independently, that is, assume that it is the only transaction that takes place. e the minus sign to indicate a negative working capital for amounts in column one. For the raties, round to three decimal places. If an amount is zero, entero" Working Capital Effect on Working Capital Effect on Current Ratio Transaction Current Ratio a. Purchased inventory on account, $17,000 none to 1 Increase b. Purchased Inventory for cash, $14,000 none none c. Pald suppliers on account, $30,000 none decrease d. Received cash on account, $40,000 none e. Pald Insurance for next year, $20,000 increase f. Made sales on account, $70,000 9. Repaid short-term loans at bank, $25,000 h. Borrowed $40,000 at bank for 90 days I. Declared and paid $45,000 cash dividend 1. Purchased $20,000 of short-term investments decrease v k. Paid $30,000 in salaries 1. Accrued additional $15,000 in taxes decrease y