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 securities Accounts receivable, net Inventory Prepaid expenses Total current assets Accounts payable Other accrued liabilities Short-term debt Total current liabilities $ 48,000 135,000 165,000 187,500 21,000 $556,500 $117,000 28,600 52,000 $197,600 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 $360,000. The cost of goods sold was $234,000 2 Collected accounts receivable, $378,000. 3. Purchased Inventory on account. $252.000 4. Issued 750 shares of common stock for $27 per share. 5. Wrote off $10.500 of uncollectible accounts using the allowance for bad debts 6. Declared and paid a cash dividend. $30,000. 7. Sold marketable securities costing $39,000 for $46,500 in cash 8. Recorded insurance expense for the year. $18,000. The premium for the policy was paid in June 2019 9. Borrowed cash on a short-term bank loan, $15.000 10. Repaid principal of $60,000 and Interest of 54.500 on a long-term bank loan Complete this question by entering your answers in the tabs below.