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Plum Corporation began the month of May with $1,000,000 of current assets, a current ratlo of 2.10:1, and an acid-test ratlo of 1.70:1. During the
Plum Corporation began the month of May with $1,000,000 of current assets, a current ratlo of 2.10:1, and an acid-test ratlo of 1.70:1. During the month, It completed the following transactlons (the company uses a perpetual Inventory system). May 2 Purchased $70, eee of nerchandise inventory on credit. May a Sold merchandise inventory that cost $50,699 for $125,690 cash. May 10 Collected $21, e9e cash on an account recelvable. May 15 Paid $25,500 cash to settle an account payable. May 17 Wrote off a $5,000 bad debt against the Allowance for Doubtful Accounts account. May 22 Declared a $1 per share cash dividend on its 59 , ee shares of outstanding common stock. May 26 Paid the dividend declared on May 22. May 27 Borrowed $95,690 cash by giving the bank a 30-day, 10x note. May 28 Borrowed $115,090 cash by signing a long-term secured note. May 29 Used the $210, e0e cash proceeds from the notes to buy new nachinery. Required: Complete the table below showing Plum's (1) current ratio, (2) acid-test ratio, and (3) working capltal after each transaction. Note: Do not round intermediate calculations. Round your ratlos to 2 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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