R(CH) ebook Effect of Transactions on Current Position Analysis Data pertaining to the current position of Newton Company are as follows: Cash $ 80,000 Temporary Investments Accounts and notes receivable (net) Inventories 160,000 235.000 190,000 10,000 Prepaid expenses 158.000 Accounts payable Notes payable (Short-term) 80,000 Accrued expenses 12,000 Instructions: 1. Compute(a) the working capital, (b) the current ratio, and (c) the quick rati Round the current ratio and the quick ratio to one decimal place Working capital 425,000 Current rato 2.7 Quick ratio 1.9 2. Compute the working capital, the current ratio, and the quick ratio after each of the following transactions, and record the results in the appropriate columns Code each transaction separately and assume that only that transaction affects the data given above. Format working capital as whole dollars. Round the current ratio and the quick ratio to one decimal place. Transaction Working Capital Current Ratio Quick Ratio a. Sold temporary investments for cash at no gain or loss, 550,000 425,000 2.70 Check My Work Next > tams Email Save and Et S.lom Assement for Grading Quick ratio 2. Compute the working capital, the current ratio, and the quick ratio after each of the following transactions, and record the results in the appropriate columns Con each transaction separately and assume that only that transaction affects the data given above. Format working capital as whole dollars. Round the current rat and the quick ratio to one decimal place. Transaction Working Capital Current Ratio Quick Ratio a. Sold temporary investments for cash at no gain or loss, $50,000 425,000 2.70 1.90 b. Paid accounts payable, $40,000 425,000 3.0 2.1 c. Purchased goods on account, $75,000. 500,000 X 3.0 x 1.9 X d. Paid notes payable, $30,000. 425,000 2.9 2.0 e. Declared a cash dividend, $15,000. 410,000 2.5 1.8 Dedared a stock dividend on common stock, $24,000. 401,000 x 2.46 X 1.7 X 9. Borrowed cash from bank on a long-term note, $150,000 575,000 3.30 1.9 X t Received cash on account, $72,000. 425,000 7.0 x 1.9 Lissued additional shares of stock for cash, 5300,000 725,000 1.9 1.9 X 1. Pald cash for prepaid expenses, $10,000 425,000 7.0 x 1.9 F Cry War (a) Subtract current liabilities from current assets Set up T accounts and calitate new balances and new working capital after each transaction (5) Divide current assets by current abilities Set up T accounts and calculate new balances and new current ratio after each transaction c) Divide quick assets by current liabilities. Quick assets are cash, temporary investments, and receivables. Set up accounts and calculate new balance Previous Check My Work + 3/4 items Emaincor Save and Et Sumt Argent for Grading Score: 67.42%