. Problem 11-12 (Algo) Effect of transactions on liquidity measures LO 1 Selected balance sheet accounts for Tibbetts Company on September 30, 2019, are as follows: Cash Marketable securitien Accounts receivable, net Inventory Prepaid expenses Total current assets $41,600 117,000 143,000 162,500 19,200 $482,300 Accounts payable 181,000 ce Other accrued liabilities 19,000 Short-term debt 36,000 Total current liabilities $136,000 Required: a. Calculate the working capital, current ratio, and acid-test ratio for Tibbetts Company as of September 30, 2019. b. Summarized here are the transactions/events that took place during the fiscal year ended September 30, 2020. Prepare journal entries for the below transactions and indicate the effect of each item on Tibbetts Company's working capital, current ratio, and acid-test ratio. Use + for increase,- for decrease, and (NE) for no effect. 1. Credit sales for the year amounted to $312,000. The cost of goods sold was $202,800. 2. Collected accounts receivable, $327,600. 3. Purchased inventory on account, $218,400 4. Issued 650 shares of common stock for $23 per share. 5. Wrote off $9,100 of uncollectible accounts using the allowance for bad debts. 6. Declared and paid a cash dividend, $26,000. 7. Sold marketable securities costing $33,800 for $40,300 in cash. 8. Recorded insurance expense for the year, $15,600. The premium for the policy was paid in June 2019. 9 Borrowed cash on a short-term bank loan, $13,000. 10. Repaid principal of $52,000 and interest of $3,900 on a long-term bank loan.