Question 2 (20 Marks) Tyson Company's working capital accounts at December 31, 2018, are given below: $100,000 50,000 Current Assets: Cash Marketable Securities Accounts Receivable Less Allowance for Doubtful Accounts Inventory, LIFO Prepaid Total Current Assets $250,000 (20.000) 230,000 300,000 8,000 $688,000 Current Liabilities: Accounts Payable Notes Payable Taxes Payable Accrued Liabilities Total Current Liabilities $200,000 50,000 10,000 30,000 $290,000 During 2019, Tyson Company completed the following transactions: a. b. . d. ovo 4 d. e. f. Purchased fixed assets for cash, $20,000. Exchanged Tyson Company common stock for land. Estimated value of transaction, $80,000. Payment of $40,000 on short-term notes payable. Sold marketable securities costing $20,000 for $25,000 cash. Sold Tyson Company common stock for $70,000. Wrote off an account receivable in the amount of $20,000. Declared a cash dividend in the amount of $5,000. Paid the above cash dividend. Sold inventory costing $10,000 for $15,000 cash. Sold inventory costing $5,000 for $8,000 on account. Paid accounts payable in the amount of $20,000. Sold marketable securities costing $20,000 for $20,000 cash. Issued a credit memo on an account receivable, $1,000. h. 1 j. k. 1. m. a. Required: Compute the following for Tyson company as of December 31, 2018: 1. working capital 2. current ratio 3. Acid-test ratio (conservative) 4. Cash ratio (These ratios are to be computed using only the December 31, 2018 data.) b. For 2019, indicate the effect of each of the transactions given on working capital, current ratio, acid-test ratio, and cash ratio of Tyson Company. Give the effect in terms of+,-, or none. Consider each transaction to be the first transaction of the year. Assume at the start of the year that Tyson Company's current ratio is over 2 to 1, the acid-test ratio is over 1 to 1, and the cash ratio is less than 1 to 1. (Hint: You may use a table to answer this question)