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Plum Corporation began the month of May with $1,400,000 of current assets, a current ratio of 260:1, and an acid-test ratio of 1201 During the

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Plum Corporation began the month of May with $1,400,000 of current assets, a current ratio of 260:1, and an acid-test ratio of 1201 During the month, it completed the following transactions (the company uses a perpetual Inventory system) Hy 2 Turchased $75,000 of archandise inwestory on credit Mw 8 Sold aerchandise inventory that cost 150,000 for $135.000 euth Ny 10 Collected 130.000 cash on an ocent receivable May 15 Ya 11.500 cash to settle sunt publ. Hwy 17 Yrst off $6.000 bad debt painst the Alleme for Doubtful Accounts are Hwy 22 Declarad. 31 per shurch dividend in its 58.000 shares of outstanding con steel Hwy 26 the dividend del rey 22 Way 27 Barrel S110.000 euth by civing the ba 30-l. 10% note May 28 Borroved $125.000 sosh by siping lotere securednote May 29 Ved the 1235.000 cash proceeds from the notes to buy muhinery 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. Amounts to be deducted should be Indicated with a minus sign.) Transaction Current Assets 5 1.400,000 75,000 Quick Assets $ 546,154 Current Ratio Current Liabilities $ 538.462 75.000 Acid Test Ratio 120 Working Capital 861533 260 613.452 240 105 861.538 646.154 135.000 Beginning May 2 May 2 Balance after May 2 May May 8 Balance afer May 8 May 10 May 10 Balance after May 10 1.475.000 135,000 (50,000) 1.560.000 30.000 (30,000) 1560.000 613.462 254 127 945 538 781,154 30.000 (30,000) 781154 613,462 251 127 946,538 This window shows your responses and what was marked correct and 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. Amounts to be deducted should be Indicated with a minus sign.) Transaction Current Assets $ 1,400,000 75,000 Quick Assets $ 646,154 Current Liabilities 538,462 75,000 Current Ratio 2.60 Acid-Test Ratio 120 Working Capital 861,538 5 varded 613.462 2.40 646,154 135,000 1,05 861,538 O 781,154 1.475.000 135,000 (50,000) 1,560,000 30,000 (30,000) 1,560,000 (31,500) 613.462 254 1 27 946,538 00 30,000 (30,000) 781,154 (31500) 2.54 127 613.462 (31,500) 946,538 Beginning May 2 May 2 Balance after May 2 May 8 May 8 Balance after May 8 May 10 May 10 Balance after May 10 May 15 May 15 Balance after May 15 May 17 May 17 Balance after May 17 May 22 May 22 Balance after May 22 May 26 May 26 Balance after May 26 May 27 May 27 1,528,500 749,654 581,962 2630 129 946,538 > 1,528,500 749,654 2.63 1.29 581 962 X 946,538 1,528,500 (58,000) 2.63% 1.29 749,654 (58,000) 946,538 X 581,962 x 1,470,500 110,000 253 691,654 110,000 1.19 581,962 110,000 > 8.88,538 > Plan

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