Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Plum Corporation began the month of May with $ 1 , 3 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 systemMay 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. PLEASE ANSWER IN THE EXACT TABLE FORMAT
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started