Plum Corporation began the month of May with $900,000 of current assets, a current ratio of 270.1, and an acid test ratio of 170.1 During the month it completed the following transactions (the company uses a perpetual inventory system). May 2 Purchased 370,000 of merchandise inventory on credit. B Sold merchandise Inventory that cost $60,000 for $155.900 cash. 10 Collected $29,000 cash on an account receivable 15 Paid $30,000 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 61,000 shares of outstanding common stock 26 Paid the dividend declared on May 22 27 Borrowed $115,000 cash by giving the bank a 30-day 103 note 28 Borrowed $130,000 cash by signing a longtem securednote, 29 Used the $245,000 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 copitols to nearest dollar amount Subtracted amount should be indicated with a minus sign.) Transaction Current Ratio Quick Assets Current Assets Current Liabilities Add. Yast Ratio Working Capital 1 70 566,667 2.70 333,333 $ 900.000 S 566 8571$ Beginning May 2 Balance Subtracted amount should be indicated with a minus sign.) Transaction Current Assets Quick Assets Current Liabilities Current Ratio Acid-Test Ratio Working Capital Beginning $ 900,000 $ 566,667 $ 333,333 2.70 1.705 566,667 May 2 Balance May 8 Balance May 10 Balance May 15 Balance May 17 Balance 22 May 17 Balance May 22 Balance May 26 Balance May 27 Balance May 28 Balance May 29 Balance A Saved Help Save & Exit Submit Check my work Plum Corporation began the month of May with $900,000 of current assets, a current ratio of 2.70.1, and an acid-test ratio of 170.1 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 $60,000 for $155,000 cash 10 Collected $29,000 cash on an account receivable. 15 Paid $30,000 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 61,000 shares of outstanding common stock. 26 Pald the dividend declared on Hay 22 27 Borrowed $115,000 cash by giving the bank a 30-day, 108 notes 28 Borrowed 3130,000 cash by signing long-term secured note 29 Used the $245,000 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 capitols to nearest dollar amount Subtracted amount should be indicated with a minus sign.) Transaction Current Assets $ 500.000 Quicksets Current Liabilities 566 667 s 333,333 Current Ratio Acid-Test Ratio Working Capital 270 1705 566 657 Beginning May 2 900,000 333,333 Balance IMA 1 of 1 No
