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 1.901, 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 $60,000 of merchandise inventory on credit 8 Sold merchandise inventory that cost $55,000 for $140,000 cash. 10 Collected $30,000 cash on an account receivable 15 Paid $30,000 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 its 66,000 shares of outstanding common st 26 Paid the dividend declared on May 22 27 Borrowed $85000 cash by giving the bank a day, 10% note. 28 Borrowed $110,000 cash by signing a long-term secured note 29 Used the $195,000 cash proceeds from the notes to buy new machinery Required: Prepare a table showing Plum's (1) current ratio, (2) aci-test ratio, and (3) working capital after each transaction. (Do not round intermediate calculations. Round your ratios to 2 decimal place the working capitals to nearest dollar amount.Subtracted amount should be indicated with a minus sign.) Transaction Beginning May 2 Current Assets Quick Assets Current Liabilities Current Ratio Acid.Test Ratio Working Capital 568,421 $ 1,200,0008053 631,579 1.90 1.30 Balance ,200,000 631,579 May 8 Balance May 10