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Plum Corporation began the month of May with $ 1 , 5 0 0 , 0 0 0 of current assets, a current ratio of
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 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.
tabletableTransactionBeginningCurrent Assets,Quick Assets,Current Liabilities,tableCurrent RatiotableAcidTest RatioWorking Capital$$May May Balance after May May May Balance after May May May Balance after May May May Balance after May May LI,Mov
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