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Problem 13-3A (Algo) Transactions, working capital, and liquidity ratios LO P3 Plum Corporation began the month of May with $1,500,000 of current assets, a current

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Problem 13-3A (Algo) Transactions, working capital, and liquidity ratios LO P3 Plum Corporation began the month of May with $1,500,000 of current assets, a current ratio of 2.30:1, and an acid-test ratio of 1.30:1. During the month, it completed the following transactions (the company uses a perpetual inventory system). May, 2 Purchased $75,000 of merebandise inventory on eredit. May 8 sold nerebandise inventory that cost $65,000 for $120,000 cash. May 10 Collected 531,000 eash on an aceount receivable? May 13 Paid $25,000 cash to lettio an account payable. May 17 Wrote oft a $5,000 bad dabe agalnat the Allowance for Doubteul Accounts account. May 26 Paid the dividend deelered on May 22. May 27 Dorroved $95,000 cash by giving the bank a 20 -day, 10k note. May 2 i Dorrowed $110,000 caeh by eigning a Long-term wecured note. May 29 taed the $205,000 canh proceedin from the noten co buy neu 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. \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|} \hline \multirow{2}{*}{\begin{tabular}{|l|} Tranuaction \\ Beginning \\ \end{tabular}} & \multicolumn{2}{|c|}{ Current Assets } & \multicolumn{2}{|c|}{ Quick Assets } & \multicolumn{2}{|c|}{ Curront Liabilitios } & Current Ratio & Acid-Test Ratio & Working Capital \\ \hline & $ & 1,500,000 & $ & 847,826 & $ & 652,174 & 2.30 & 1.30 & 847,826 \\ \hline \multirow{2}{*}{\multicolumn{10}{|c|}{\begin{tabular}{l} May 2 \\ May 2 \end{tabular}}} \\ \hline May 2 & & & & & & & & & \\ \hline Balance after May 2 & & 1,500,000 & & & & 652,174 & & & \\ \hline \multicolumn{10}{|l|}{ May 8} \\ \hline \multicolumn{10}{|l|}{ May 8} \\ \hline \multicolumn{10}{|l|}{ Balance after May 8} \\ \hline \multirow{2}{*}{\multicolumn{10}{|c|}{\begin{tabular}{|l|} May 10 \\ May 10 \\ \end{tabular}}} \\ \hline May 10 & & & & & & & & & \\ \hline \multicolumn{10}{|l|}{ Balance affer May 10} \\ \hline \multirow{2}{*}{\multicolumn{10}{|c|}{\begin{tabular}{l} May 15 \\ May 15 \end{tabular}}} \\ \hline \multicolumn{8}{|l|}{ May 15} & & \\ \hline \multicolumn{10}{|l|}{ Balance after May 15} \\ \hline \multicolumn{10}{|l|}{ May 17} \\ \hline \multicolumn{10}{|l|}{ May 17} \\ \hline \multicolumn{10}{|l|}{ Balance after May 17} \\ \hline \multicolumn{10}{|l|}{May22} \\ \hline \multicolumn{10}{|l|}{May22} \\ \hline Balance after May 22 & & & & & & & 1 & & \\ \hline \end{tabular}

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