Problem 13-3A Transactions, working capital, and liquidity ratios LO P3 Plum Corporation began the month of May with $1,200,000 of current assets, a current ratio of 2.30:1, and an acid-test ratio of 1.60:1. During the month, it completed the following transactions (the company uses a perpetual inventory system). 2 Purchased $75,000 of merchandise inventory on credit. 8 Sold merchandise inventory that cost $65,000 for $150,000 cash. 10 Collected $21,000 cash on an account receivable. 15 Paid $26,500 cash to settle an account payable. 17 Wrote off a $5,000 bad debt against the Allowance for Doubtful Accounts account. 22 Declared a $1 per share cash dividend on ite 62,000 ahares of outetanding conmon atock 26 Paid the dividend declared on May 22. 27 Borrowed $110,000 cash by giving the bank a 30-day, 108 note. 28 Borrowed $130,000 cash by aigning a long-term secured note. 29 Used the $240,000 cash proceeds from the notes to buy new machinery. May es Required: Complete the table below showing Plum's (1) current ratio, (2) acid-test ratio, and (3) working capital after each transaction. (Do not round intermediate calculations. Round your ratios to 2 decimal places and the working capitals to nearest dollar amount. Subtracted amount should be lIndicated with a minus sign.) Required: Complete the table below showing Plum's (1) current ratio, (2) acid-test ratio, and (3) working capital after each transaction. (Do not round Intermediate calculations. Round your ratios to 2 declmal places and the working capitals to nearest dollar amount. Subtracted amount should be Indicated with a minus sign.) Current Assets Quick Assets Transaction Current Liabilitios Acid-Test Ratio Working Capital Current Ratio Beginning 1,200,000 $834,783 521,739 1.60 $ 2.30 678,261 May 2 ces Balance 1,200,000 521,739 May 8 Balance May 10 Balance May 15 Balance May 17 Balance Checl May 17 Balance May 22 Balance May 26 Balance May 27 Balance May 28 Balance May 29 Balance