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Need help please! I am burned out Plum Corporation began the month of May with $1,100,000 of current assets, a current ratio of 2.20:1, and
Need help please! I am burned out
Plum Corporation began the month of May with $1,100,000 of current assets, a current ratio of 2.20:1, and an acid-test ratio of 1.30:1. During the month, it completed the following transactions (the company uses a perpetual inventory system). May 2 Purchased $60,00 of merchandise inventory on credit. May 8 Sold merchandise inventory that cost $6, for $12, cash. May 10 collected $22, 0ee cash on an account receivable. May 15 Paid $25,00 cash to settle an account payable. May 17 Wrote off a $5,800 bad debt against the Allowance for Doubtful Accounts account. May 22 Declared a $1 per share cash dividend on its 57, eee shares of outstanding common stock. May 26 paid the dividend declared on May 22. May 27 Borrowed $10,00 cash by giving the bank a 3e-day, 10% note. May 28 Borrowed $12,080 cash by signing a long-term secured note. May 29 Used the $22,00 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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