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Plum Corporation began the month of May with $900,000 of current assets, a current ratio of 2.10:1, and an acid-test ratio of 1.50:1. During the

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Plum Corporation began the month of May with $900,000 of current assets, a current ratio of 2.10:1, and an acid-test ratio of 1.50:1. 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. May 8 Sold merchandise inventory that cost $55,000 for $115,000 cash. May 10 Collected $22,000 cash on an account receivable. May 15 Paid $27.500 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 canh dividend on it 61,000 shares of outstanding common stock. May 26 Paid the dividend declared on May 22. May 27 Borrowed $115,000 canh by giving the bank a 30-day 104 note. May 28 Borrowed $145,000 canh by signing a long-term secured notes May 29 Uued the $260,000 CAD proceeds from the note to buy now 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. Amounts to be deducted should be indicated with a minus sign.) Transaction Current Assets Quick Assets Current Liabilitios Current Ratio Acid-Test Ratio Working Capital S 900,000 $ S 471,429 642,857 M150 2.10 428,571 $ Beginning May 2 65.000 65,000 965,000 Balance 842,857 493,571 1.96 471.429 May 8 115,000 115,000 (55,000) Balance 1,025,000 757,857 493,574 2.08 May 10 22.000 22,000 Balance May 15 (27,500) (27,500) (27,500) Balance May 17 0 Balance 61.000 May 22 Balance May 26 (61,000) (61.000) (61000) Balanco 115,000 May 27 115,000 115,000 Balance 145,000 145,000 May 28 Balance May 29 (260.000) (260,000) Balance

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