Plum Corporation began the month of May with $1,300,000 of current assets, a current ratio of 2.70:1, and an acid-te During the month, it completed the following transactions (the company uses a perpetual inventory system). May 2 Purchased $60,000 of merchandise inventory on credit. May 8 Sold merchandise inventory that cost $60,000 for $130,000 cash. May 10 Collected $30,000 cash on an account receivable. May 15 Paid $29,500 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 63,000 shares of outstanding common stock. May 26 Paid the dividend declared on May 22. May 27 Borrowed $105,000 cash by giving the bank a 30-day, 10% note. May 28 Borrowed $115,000 cash by signing long-term secured note. May 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 Note: Do not round intermediate calculations. Round your ratios to 2 decimal places and the working capit. amount. Amounts to be deducted should be indicated with a minus sign. Transaction Beginning May 2 May 2 Balance after May 2 MO W A+ F3 # 3 E Current Assets $ F4 $ 4 1,300,000 1,300,000 --- R F5 Current Liabilities 770,370 $ Quick Assets $ Q Search % 5 < Prev 0 + T F6 6 481,481 09 5 of 5 481,481 F7 Y & Current Ratio 7 I Next F8 2.70 U WW Acid-Test Ratio Worki 1.60 $ O * 8 F9 J OP F10