Plum Corporation began the month of May with $800,000 of current assets, a current ratio of 2.20:1, and an acid-test ratio of 1.40:1. During the month, it completed the following transactions (the company uses a perpetual inventory system).

May2 Purchased $70,000 of merchandise inventory on credit.

8 Sold merchandise inventory that cost $45,000 for $160,000 cash.

10 Collected $23,000 cash on an account receivable.

15 Paid $23,500 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 56,000 shares of outstanding common stock.

26 Paid the dividend declared on May 22.

27 Borrowed $90,000 cash by giving the bank a 30-day, 10% note.

28 Borrowed $115,000 cash by signing a long-term secured note.

29 Used the $205,000 cash proceeds from the notes to buy new machinery.

Required:

Prepare a table 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. If a transaction has no effect, enter a 0.)

Plum Corporation began the month of May with $800,000 of current assets, a current ratio of 2.20:1, and an acid-test ratio of 1.40:1. During the month, it completed the following transactions (the company uses a perpetual inventory system). May 2 Purchased $70,000 of merchandise inventory on credit. 8 Sold merchandise inventory that cost $45,000 for $160,000 cash 10 Collected $23,000 cash on an account receivable. 15 Paid $23,500 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 56,000 shares of outstanding common stock. 26 Paid the dividend declared on May 22. 27 Borrowed $90,000 cash by giving the bank a 30-day, 10% note. 28 Borrowed $115,000 cash by signing a long-term secured note. 29 Used the $205,000 cash proceeds from the notes to buy new machinery