Plum Corporation began the month of May with $1,200,000 of current assets, a current ratio of 2.501, and an acid-test ratio of 1.301 During the month, it completed the following transactions (the company uses a perpetual inventory system) May 2 Purchased $65,000 of merchandise inventory on credit. 8 Sold merchandise inventory that cost $40,000 for $125,000 cash. 10 Collected $28,000 cash on an account receivable. 15 Paid $26,000 cash to settle an account payable. 17 Wrote off a $5,000 bad debt against the Allowance for Doubtful Accounts account. 22 Declared a $1 per share cash dividend on its 68,000 shares of outstanding common stock. 26 Paid the dividend declared on May 22. 27 Borrowed $100,000 cash by giving the bank a 30-day, 10 note. 28 Borrowed $120,000 cash by signing a long-term secured note. 29 Used the $220,000 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 Subtracted amount should be indicated with a minus sign) Transaction Current Assets Quick Assets Current Liabilities Beginning May 2 $ 1,200,000 $ 624,000 $ 480,000 250 Current Ratio Acid-Test Ratio Working Capital 130 $ 720,000 Balance May 8 Balance May 10 Balance - May 151 @ 2 1.200.000 W S # *3 0 74 $ E D 480,000 < Prev 6 of 6 Next > MacBook Pro 7 8 00 G Search or type URL % 5 16 & 27 R T Y U 61 ' 9 - 0 LL F G H J K L C < M