Q 3. Decathlon faces the following transactions: The firm's existing current ratio is 2:1 and its quick ratio is 1.2:1. 1. Firm wrote off Rs. 5,000 of accounts receivable as uncollectible. 2. A bank informs firm that a customer's check for Rs. 411 is returned marked insufficient funds. The customer is bankrupt. 3. The owners of firm make an additional cash investment of Rs.7,500. 4. Inventory costing Rs.600 is judged obsolete when a physical inventory is taken. 5. Firm declares a Rs.5,000 cash dividend to be paid during the first week of the next reporting period. 6. Firm purchases long-term investments for Rs.10,000. 7. Accounts payable of Rs.9,000 are paid. 9. Firm sells a vacant lot for Rs.20,000 that had been used in its operations. 10. A three-year insurance policy is purchased for Rs. 1,500. Required: Measure the direct effect of each transaction separately on the firm's: a. Current ratio. b. Quick (acid-test) ratio. c. Working capital. (10 Marks)