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how to compute Denne Company's working capital accounts at the beginning of the year follows Marketable securities Andpints receivable. net Inventory Prepeld expenses accounts payable

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Denne Company's working capital accounts at the beginning of the year follows Marketable securities Andpints receivable. net Inventory Prepeld expenses accounts payable 3 191 53 votes due within one year Served liabilities During the year, Denna Company completed the following transactions Ex. Paid a cash dividend previously declared. $25.000. a. Issued additional shares of common stock for cash, $190.000 D. Sold Inventory costing $66.000 for $35.000. on account C. Wrote off uncollectible accounts In the amount of $81000, reducing the accounts receivable balance according d. Declared a cash dividend. $25.000. e. Pald accounts payable. $92000 f. Borrowed cash on a short-term note with the bank, $62 500 9. Sold Inventory costing $21.000 for $141000 caEn h. Purchased inventory on account. $46.250 1. Paid off all short-term notes due. $142 500 J. Purchased equipment for cash. $71,000 k. Sold marketable securities costing $17100 for cash. $14.050 I. Collected cash on accounts receivable. $74.500 Required: 1. Compute the following amounts and ratios as of the beginning of the year a. Working capital. b. Current radio. C. Acid-test radio I Indicate the effect of each of the transactions giver above on working capital, the current ratio. and the acid-test ratio effect in terms of increase, decrease. or none. Item (Ex is given as an example. Consider each vansaction independently their effects as compared to the ratios and amounts at the beginning of the period. Answer is complete but not entirely correct. Complete this question b answers in the tabs below. d your ratios to 2 decimal places.) Required 2

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