PR 17-3A Effect of transactions on current position analysis OBJ. 3 ratio, 20 Data pertaining to the current position of Forte Company follow: Cash Marketable securities Accounts and notes receivable (net) Inventories Prepaid expenses Accounts payable Notes payable (short-term) Accrued expenses $412,500 187.500 300,000 700,000 50,000 200,000 250,000 300,000 Excel Instructions 1. Compute (a) the working capital, (b) the current ratio, and (o) the quick ratio. Round ratios in parts b through j to one decimal place 2. List the following captions on a sheet of paper: Transaction Working Capital Current Ratio Quick Ratio Compute the working capital, the current ratio, and the quick ratio after each of the following transactions and record the results in the appropriate columns. Consider each transaction separately and assume that only that transaction affects the data given. Round to one decimal place a. Sold marketable securities at no gain or loss, $70,000. b. Paid accounts payable, $125,000. c. Purchased goods on account, $110,000 d. Paid notes payable, $100,000 e. Declared a cash dividend, $150,000 f. Declared a common stock dividend on common stock, $50,000 g. Borrowed cash from bank on a long-term note, $225,000 h. Received cash on account, $125,000 i. Issued additional shares of stock for cash, $600,000 j. Paid cash for prepaid expenses, $10,000