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HELP ASAP ! CORRECT ANSWERS ONLY . Plum Corporation began the month of May with $1,400,000 of current assets, a current ratio of 2.00:1, and
HELP ASAP ! CORRECT ANSWERS ONLY .
Plum Corporation began the month of May with $1,400,000 of current assets, a current ratio of 2.00:1, and an acid-test ratio of 1.50:1. During the month, it completed the following transactions (the company uses a perpetual inventory system). May 2 Purchaeed $70,000 of merchandise inventory on credit. May 8 Sold perchandise inventory that cost $45,000 for $120,000cash. May 10 collected $24,000 cash on an account receivable. Kay 15 paid $30,000 cash to settle an account payable. Kny 17 Krote off a 55,000 bad debt against the Allowance for Doubtful Accounts account. May 22 Declared a $1 per shate cash dividend on its 60,000 shares of outatanding comnon stock. May 26 Paid the dividend declared on May 22. May 27 Sorrowed $105,000 cash by giving the bank a 30-day, 10 note. May 28 Borroved $125,000 cash by giving the bank a 30 -day, 108 note. May 29 Used the $230,000 cash proceeds from the notes to buy new machinery. Required: Complete the table below showing Plum's (1) current ratio, (2) acid-test ratio, and (3) working capital after each transaction, (Do not round Intermediate calculations. Round your ratios to 2 decimal places and the working capitals to nearest dollar amount. Amounts to be deducted should be indicated with a minus sign.)Step by Step Solution
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