Plum Corporation began the month of May with $900,000 of current assets, a current ratio of 2.50:1, and an acid-test ratio of 1.60.1. During the month, it completed the following transactions (the company uses a perpetual inventory system). May 2 Purchased $75,000 of merchandise inventory on credit. May 8 Sold merchandise inventory that cost $45,000 for $135,000 cash. May 10 Collected $27,000 cash on an account receivable. May 15 Paid $31,000 cash to settle an account payable. Wrote off a $5,000 bad debt against the Allowance for Doubtful Accounts account. Declared a $1 per share cash dividend on its 62,000 shares of outstanding common stock. May 17 May 22 May 26 Paid the dividend declared on May 22. May 27 Borrowed $100,000 cash by giving the bank a 30-day, 10% note. May 28 Borrowed $110,000 cash by signing a long-term secured note. May 29 Used the $210,000 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. Note: 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 Beginning May 2 May 2 Current Assets Quick Assets Current Liabilities 900,000 $ 576,000 $ 70,000 $ 0 676 500 0 360,000 70,000 0 130.000: Current Ratio Acid-Test Ratio Working Capital 540,000 2.50 1.60 $

Plum Corporation began the month of May with $900,000 of current assets, a current ratio of 2.501 , and an acid-test ratio of 160.1 . During the month, it completed the following transactions (the company uses a perpetual inventory system) Hay 2 Purchased $75,000 of merchandise inventory on credit. May 8 sold merchandise inventory that cost $45,090 for $135,000 cash. May 10 collected $27,000 cash on an account receivable. May 15 Pald $31,0ee cash to settle an account payable. May 17 Wrote off a $5,60e bad debt against the Allowance for Doubtful Accounts account. May 22 Declared a $1 per share cash dividend on its 62,000 shares of outstanding comon stock. May 26 Paid the dividend declared on May 22 . May 27 Borrowed $100,009 cash by giving the bank a 30 -day, 10% note. May 28 Borrowed $110,000 cash by signing a long-tern secured note. May 29 Used the $210,060 cash proceeds fron 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. Note: Do not round intermediate calculations. Round your ratios to 2 decimal places and the working capitals to nearest doller amount. Amounts to be deducted should be indicated with a minus sign