Effect on transactions on liquidity measures

Selected balance sheet accounts for Tibbets Company on September 30, 2019, are as follows:

Cash $48,000.00

Marketable securities 87,000

Accounts receivable, net 129,000

Inventory 135,000

Prepaid expenses 21,000

total current assets $420,000.00

Accounts Payable $147,000.00

Other accrued liabilities 33,000

Short-term debt 60,000

total current liabilities $240,000.00

Required:

a. Calculate the working capital, current ration, and acid-test ratio for Tibbetts Company as of Sep 30,2019

b. Summarized here are the transactions/events that took place during the fiscal year ended Sep 30,2020. Indicate the effect of each item on Tibbets Co's working capital, current ratio, and acid-test ratio. Use + for increase , - for decrease, and (NE) for no effect. [Hint: It may be helpful to use the horizontal model or to record the journal entry(ies) for each item before considering the effects on liquidity measures.]