Problem 17-3A (Algo) Transactions, working capital, and liquidity ratios L Plum Corporation began the month of May with $700,000 of current assets, a current ratio of 1.80:1, and an acid-test ratio of 1.40:1 During the month, it completed the following transactions (the company uses a perpetual Inventory system). May 2 Purchased $75,000 of merchandise inventory on credit. May 8 3old merchandise inventory that cost $65,000 for $120,000 cash. May 10 Collected $27,000 cash on an account receivable. May 15 Paid $26,000 cash to settle an account payable. May 17 Wrote off a $5,000 bad debt against the Allowance for Doubtful Accounts account. May 22 Declared a $1 per share cash dividend on its 67,000 shares of outstanding common stock. May 26 Paid the dividend declared on May 22. May 27 Borrowed $95,000 cash by giving the bank a 30-day, 108 note. May 28 Borrowed $115,000 cash by signing a long-term secured note. May 29 Used the $210,000 cash proceeds from the notes to buy nex machinery. 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 ratlos to 2 decimal places and the working capitals to nearest dollar amount. Amounts to be deducted should be indicated with a minus sign.) Transaction Current Assets Quick Assets Current Liabilities Current Ratio Acid-Test Ratio Working Capital Beginning s 700.000 S 544,444 $ 388,889 1.80 1.40 S 311,111 May 2 Balance 700,000 388,889 May 8 Balance May 10 Balance May 15 Balance May 17 Balance May 22 Balance May 28 Balance May 27 Balance May 28 Balance May 29 Balance