Problem 11-16 (Static) Effect of transactions on liquidity measures LO 11-1 Selected balance sheet accounts for Tibbetts Company on September 30, 2022, 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 Required: $ 54,000 87,000 129,000 189,000 21,000 $ 480,000 $ 147,000 63,000 90,000 $ 300,000 a. Calculate the working capital, current ratio, and acid-test ratio for Tibbetts Company as of September 30, 2022. b. Summarized here are the transactions/events that took place during the fiscal year ended September 30, 2023. 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 $320,000. The cost of goods sold was $210,000. 2. Collected accounts receivable, $305,000. 3. Purchased inventory on account, $192,000. 4. Issued 150 shares of common stock for $35 per share. 5. Wrote off $7,500 of uncollectible accounts using the allowance for bad debts. 6. Declared and paid a cash dividend, $20,000. 7. Sold marketable securities costing $22,000 for $39,000 in cash. 8. Recorded insurance expense for the year, $14,000. The premium for the policy was paid in June 2022. 9. Borrowed cash on a short-term bank loan, $12,000. 10. Repaid principal of $50,000 and interest of $3,500 on a long-term bank loan. Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Calculate the working capital, current ratio, and acid-test ratio for Tibbetts Company as of September 30, 2022. Note: Round "Ratio" answers to 2 decimal places. Working capital Current ratio Acid-test ratio Required A Required B1 Required B2 Summarized here are the transactions/events that took place during the fiscal year ended September 30, 2020. Prepare journal entries for the below transactions. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. 1. Credit sales for the year amounted to $320,000. The cost of goods sold was $210,000. 2. Collected accounts receivable, $305,000. 3. Purchased inventory on account, $192,000. 4. Issued 150 shares of common stock for $35 per share. 5. Wrote off $7,500 of uncollectible accounts using the allowance for bad debts. 6. Declared and paid a cash dividend, $20,000. 7. Sold marketable securities costing $22,000 for $39,000 in cash. 8. Recorded insurance expense for the year, $14,000. The premium for the policy was paid in June 2022. 9. Borrowed cash on a short-term bank loan, $12,000. 10. Repaid principal of $50,000 and interest of $3,500 on a long-term bank loan. View transaction list Journal entry worksheet B D E F G H K > Credit sales for the year amounted to $320,000. Note: Enter debits before credits. Transaction 1(a) General Journal Debit Credit Record entry Clear entry View general journal Show less