Che 24 10 points Plum Corporation began the month of May with $1,300,000 of current assets, a current ratio of 2.00:1, and an acid-test ratio of 1.40:1 During the month, it completed the following transactions the company uses a perpetual inventory system May 2 Pireased $75,000 of merchandise inventory on credit Sold marchandise inventory that cost $45.000 for $125,000 10 collected $26.000 cash on a count receivable 15 Paid 125,00 cash to settle an Account payable 17 wrote off $5,000 bad debt against the Allowance for tablet med 22 Dalared as per the cash dividend on it 5.000 stares of outstanding common stock 25 Paid the dividend declared on May 22 27 Borrowed 5110,000 cash by giving the bank. 30-day, 109 sete. 28 Borrowed 5130,000 CA by long-term sure not 29 sed the $240.000 cash po Prom the notes to buy new machinery ren Required: Complete the table below showing Plum's 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 Subtracted amount should be indicated with a minus sign.) Transaction Beginning May 2 Current Assets Quick Ansets Current Liabilities $ 1.300.000 $ 910,000 $ 650.000 Current Ratio Auld-Test Ratio Working Capital 200 1405 650.000 1.300.000 650.000 Balance May Balance Ch 13 HW - ACG3073 Saved Help 24 Plum Corporation began the month of May with $1,300,000 of current assets, a current ratio of 2.00:1, and an acid-test ratio of 1.40:1 During the marth, it completed the following transactions the company uses a perpetual inventory system) 10 Don May 2 Prohased $75,000 of merchandise inventory on credit Bold merchandise inventory that cost $45,000 for $125.000 cash. 10 Collected $26.000 cash on an account receivable 15 Pald $25,000 cash to settle an account payable 17 wrote of $5,000 bad debt against the Allowance for Doubtful Accounts account. 22 Declared 51 per share cash dividend on its 50.000 shares of outstanding common stock. 26 Paid the dividend declared on May 22. 27 Borrowed $110,000 cash by iving the bank 430-day, 0 note. 28 Borrowed $130,000 cash by signing a long-term seed note 29 Uned the 5240,000 cash proceeds from the notes to buy new machinery rences 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 Subtracted amount should be indicated with a minus sign.) Current Assets Transaction Begiring May 2 Quick Assets Current Liabilities 910,000 $ 650,000 Current Ratio 2.00 Acid-Test Ratio Working Capital 1405 650.000 $ 1.800.000 Balance 1.300.000 650,000 May 8 Balance MC GA Prey 2074 Nay Seved Hel 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. Subtracted amount should be indicated with a minus sign.) Transaction Current Assets Quick Assets Current Liabilities Current Ratio Acid-Test Ratio Working Capital s 1,300,000 $ 910.000 $ 650,000 2.00 1.40 $ 650,000 Beginning May 2 Balance 1,300,000 650,000 May 8 Balance May 10 Balance May 15 Balance May 17 Balance May 22
