Problem 17-3A Transactions, working capital, and liquidity ratios LO P3 Plum Corporation began the month of May with $900,000 of current assets, a current ratio of 2.20:1, and an acid-test ratio of 1.70:1. During the month, it completed the following transactions (the company uses a perpetual inventory system) May 2 Purchased $65,000 of merchandise inventory on credit 8 Sold merchandise inventory that cost $60,000 for $155,000 cash 10 Collected $23,000 cash on an account receivable 15 Paid $25,500 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 60,000 shares of outstanding common stock 26 Paid the dividend declared on May 22 27 Borrowed $110,000 cash by giving the bank a 30-day, 10% note 28 Borrowed $125,000 cash by signing a long-term secured note 29 Used the $235,000 cash proceeds from the notes to buy new 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 ratios to 2 decimal places and the working capitals to nearest dollar amount. Subtracted amount should be indicated with a minus sign.)