Problem 13-3A Transactions, working capital, and liquidity ratios LO P3 Plum Corporation began the month of May with $1,000,000 of current assets, a current ratio of 2.301, and an acid-test ratito of 1.301, During the month, it completed the following transactions (the company uses a perpetual inventory system) May 2 Purchased $88,008 of merchandise inventory on credit. 8 Sold nerchandise inventory that cost $se,e8 for $155,080 cash. 18 Collected $25,880 cash on an account receivable. 15 Paid $29,880 cash to settle an account payable. 17 Wrote off a $5,880 bad debt against the Allowance for 2 Declared a $1 per share cash dividend on its 67,030 shares of outstandine conmon stock. 26 Paid the dividend declared on May 22. 27 Borrowed $118,88a cash by giving the bank a 38-day, 183 note. 28 Borrowed $130,888 cash by siening a long-term secured note. Daubt ful Accounts arcount. 29 Used the $248,800 cash proceeds fron the notes to buy ineus machinery. Required: Complete the table below showing Plum's CO current ratio, 12) acid-test ratio, ond (3) working capital after each transaction (Do not round intermediate calculations. Round your ratios to 2 decimal pleces and the working capitals to nearest dollar amount. Subtracted amount should be indicated with a minus sign.) 3 Answer is not complete. Acid-Test Ratio iorking Current ansaction AsessCartites artoAila Tetan Ratio Assets 230 130 S 565,217 434793 80 000 514,783 S 1,000,000 5 585,217 5 Beginning May 2 80,000 110565,217 210 565,217 50000 155.000 1,080,000 Balance May 8 140670.217 G 230 514.783 720.217 1,030.000 Balance 1 140670,217 230 720,217 514,783 1,030,000 Balanoe May 10 1.40670,217 13 2.30 514,783 1,030,000 T20 217 (29 0000 029,000) e 1 (29,000) May 15 501 217 432.38142670217 (5,000) 1,001,000 Balance (5,00001 May 17 141665,217 237 485,783 696,217 Balance 995,000 67,000 May 22 208598,217 552,783 996,000 638 217 Balance 67,000(67,000) May 26 1.96 996,000 112531,217 485,793 619,217 Balance 110,000 ei 110.000 e May 27 110,000 1.80 3 595,783 110 531,217 1.106,000 729.217 Balance May 28 130,000 130000 1.30661,217 859 217 595,783 200 Balance 1,236,000 May 29 ol (240000) e (240,000) 093 3421,217 Balanca 996 000 619,217 595 793 1.64