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( NUMBER 1 6 ) Problem 1 3 - 3 A ( Algo ) Transactions, working capital, and liquidity ratios LO P 3 Plum Corporation
NUMBER Problem A Algo Transactions, working capital, and liquidity ratios LO P Plum Corporation began the month of May with $ of current assets, a current ratio of : and an acidtest ratio of : During the month, it completed the following transactions the company uses a perpetual inventory system May Purchased $ of merchandise inventory on credit. May Sold merchandise inventory that cost $ for $ cash. May Collected $ cash on an account receivable. May Paid $ cash to settle an account payable. May Wrote off a $ bad debt against the Allowance for Doubtful Accounts account. May Declared a $ per share cash dividend on its shares of outstanding common stock. May Paid the dividend declared on May May Borrowed $ cash by giving the bank a day, note. May Borrowed $ cash by signing a longterm secured note. May Used the $ cash proceeds from the notes to buy new machinery. Required: Complete the table below showing Plum's current ratio, acidtest ratio, and working capital after each transaction. Note: Do not round intermediate calculations. Round your ratios to decimal places and the working capitals to nearest dollar amount. Amounts to be deducted should be indicated with a minus sign.Required: Complete the table below showing Plum's current ratio, acidtest ratio, and working capital after each transaction. Note: Do not round intermediate calculations. Round your ratios to decimal places and the working capitals to nearest dollar amount. Amounts to be deducted should be indicated with a minus sign.
NUMBER Problem A Algo Transactions, working capital, and liquidity ratios LO P
Plum Corporation began the month of May with $ of current assets, a current ratio of : and an acidtest ratio of : During the month, it completed the following transactions the company uses a perpetual inventory system
May Purchased $ of merchandise inventory on credit.
May Sold merchandise inventory that cost $ for $ cash.
May Collected $ cash on an account receivable.
May Paid $ cash to settle an account payable.
May Wrote off a $ bad debt against the Allowance for Doubtful Accounts account.
May Declared a $ per share cash dividend on its shares of outstanding common stock.
May Paid the dividend declared on May
May Borrowed $ cash by giving the bank a day, note.
May Borrowed $ cash by signing a longterm secured note.
May Used the $ cash proceeds from the notes to buy new machinery.
Required:
Complete the table below showing Plum's current ratio, acidtest ratio, and working capital after each transaction.
Note: Do not round intermediate calculations. Round your ratios to decimal places and the working capitals to nearest dollar amount. Amounts to be deducted should be indicated with a minus sign.Required:
Complete the table below showing Plum's current ratio, acidtest ratio, and working capital after each
transaction.
Note: Do not round intermediate calculations. Round your ratios to decimal places and the working capitals to
nearest dollar amount. Amounts to be deducted should be indicated with a minus sign.
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