Selected amounts from Reingold Company's balance sheet from the beginning of the year follow: Cash Marketable Securities Accounts receivable, net Inventory Prepaid expenses Plant and equipment, net Accounts payable Accrued liabilities Notes due within one year Bonds payable in five years $ 73,000 $ 13,500 357,200 $ 467,800 $ 10,100 $980,000 $ 205,400 $ 62,700 $ 106,000 S 143,000 uring the year, the company completed the following t X. Purchased inventory on account, $52,250 a. Declared a cash dividend, $33,000 b. Paid accounts payable, $104,800 C. Collected cash on accounts receivable, $83,300 d. Purchased equipment for cash, $77,400 e. Paid a cash dividend previously declared, $33,000 f. Borrowed cash on a short-term note with the bank, $64,500 g. Sold inventory costing $72,400 for $103,000, on account h. Wrote off uncollectible accounts in the amount of $11,200 reducing the accounts receivable balance accordingly Sold marketable securities costing $13,500 for cash, $10,200 Issued additional shares of common stock for cash, $206,000 i. k. Paid off all short-term notes due, $170,500 Required 1. Compute the following amounts and ratios as of the beginning of the year a. Working capital Working capital b. Current ratio. (Round your answer to 2 decimal places.) Current ratio c. Acid-test ratio. (Round your answer to 2 decimal places.) test ratio 2. Indicate the effect of each of the transactions given above on working capital, the current ratio, and the acid-test ratio. Give the effect in terms of increase, decrease, or none. Item (x) is given as an example Consider each transaction independently and indicate their effects as compared to the ratios and amounts at the beginning of the period The Effect on Working Capital Transaction Current Ratio Acid-Test Ratio (x) Purchased inventory on account (a) Declared a cash dividend (b) Paid accounts payable (c) Collected cash on accounts receivable (d) Purchased equipment for cash (e) Paid a cash dividend previously declared (f) Borrowed cash on a short-term note with the bank (g) Sold inventory on account at more than its cost (h) Wrote off uncollectible accounts (i) Sold marketable securities at less than its cost C) Issued additional shares of common stock for cash (k) Paid off short-term notes None Decrease Decrease