Selected amounts from Reingold Company's balance sheet from the beginning of the year follow Cash Marketable Securities Accounts receivable, net $75,000 $ 14,500 $ 362,000 $ 473,000 11,500 1,000,000 Prepaid expenses Plant and equipment, net Accounts payable Accrued liabilities Notes due within one year Bonds payable in five years $209,000 $ 64,500 $ 110,000 145,000 During the year, the company completed the following transactions: x. Purchased inventory on account, $53,750. a. Declared a cash dividend, $35,000 b. Paid accounts payable, $108,000. c.Collected cash on accounts receivable, $85,500 d. Purchased equipment for cash, $79,000 e. Paid a cash dividend previously declared, $35,000. f. Borrowed cash on a short-term note with the bank, $67,500. Sold inventory costing $74,000 for $105,000, on account h. Wrote off uncollectible accounts in the amount of $12,000 reducing the accounts receivable balance accordingly i. Sold marketable securities costing $14,500 for cash, $11,000. j. Issued additional shares of common stock for cash, $210,000. k. Paid off all short-term notes due, $177,500. Required 1. Compute the following amounts and ratios as of the beginning of the year: a. Working capital. Working capital Current ratio (Round your answer to 2 decimal places.) b. Current ratio. (Round your answer to 2 doclmal placos.) c. Acid-test ratio. (Round your answer to 2 decimal places.) t ratio Indicate the effect of each of the transactions given above on working capital, the current ratio, and the acid-test rato. 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 Transaction Current Ratio Acid-Test Capital 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 (1) 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 0 Sold marketable securities at less than its cost ) Issued additional shares of common stock for cash (k) Paid off short-term notes None Decrease Decrease