Problem 13-3A Transactions, working capital, and liquidity ratios P3 Plum Corporation began the month of May with $700,000 of current assets, a current ratio of 2.50:1, and an acid-test ratio of 1.10:1. During the month, it completed the following transactions. The company uses a perpetual inventory system. May 2 Purchased $50,000 of merchandise inventory on credit. 8 Sold merchandise inventory that cost $55,000 for $110,000 cash. 10 Collected $20,000 cash on an account receivable. 15 Paid \$22,000 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 50,000 shares of outstanding common stock. 26 Paid the dividend declared on May 22. 27 Borrowed $100,000 cash by giving the bank a 30 -day, 10% note. 28 Borrowed $80,000 cash by signing a long-term secured note. 29 Used the $180,000 cash proceeds from the notes to buy new machinery. Check May 22: Current ratio, 2.19; Acid-test ratio, 1.11 May 29: Current ratio, 1.80; Working capital, \$325,000 Required Prepare a table, similar to the following, showing Plum's (1) current ratio, (2) acid-test ratio, and (3) working capital after each transaction. Round ratios to two decimals