Problem 13-3A Transactions, working capital, and liquidity ratios LO P3 Plum Corporation began the month of May with $700,000 of current assets, a current ratio of 2.80:1, and an acid-test ratio of 1.50:1. During the month, it completed the following transactions (the company uses a perpetual inventory system). May 2 Purchased $55,000 of merchandise inventory on credit 8 Sold merchandise inventory that cost $45,000 for $150,000 cash. 10 Collected $28,000 cash on an account receivable. 15 Paid $24,000 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 64,000 shares of outstanding common stock 26 Paid the dividend declared on May 22. 27 Borrowed $90,000 cash by giving the bank a 30-day, 10% note 28 Borrowed $105,000 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) 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 indicated with a minus sign.) sactionCurrent Beginning May 2 Quick Assets Current Liabilities Current Ratio Acid-Test Ratio Working Capital S 700,000 S 375,000 $ 250,000 2.80 1.50 S 450,000 700,000 250,000