The following account balances are taken from the records of Veriform Inc.: Cash $ 70,000 Short-term investments $ 60,000 Accounts receivable $ 80,000 Inventory $100,000 Prepaid insurance $ 10,000 Accounts payable $ 75,000 Taxes payable $ 25,000 Salaries and wages payable $ 40,000 Short-term loans payable $210,000 Required 1. Use the information provided to compute the amount of working capital and Veriforms current and quick ratios (round to three decimal points). 2. Determine the effect that each of the following transactions will have on Veriforms working capital, current ratio, and quick ratio by recalculating each and then indicating whether the measure is increased, decreased, or not affected by the transaction. (For the ratios, round to three decimal points.) Consider each transaction independently; that is, assume that it is the only transaction that takes place. Effect of Transaction on Working Current Quick Transaction Capital Ratio Ratio a. Purchased inventory on account, $20,000 b. Purchased inventory for cash, $15,000 c. Paid suppliers on account, $30,000 d. Received cash on account, $40,000 e. Paid insurance for next year, $20,000 f. Made sales on account, $60,000 g. Repaid short-term loans at bank, $25,000 h. Borrowed $40,000 at bank for 90 days i. Declared and paid $45,000 cash dividend j. Purchased $20,000 of short-term investments k. Paid $30,000 in salaries l. Accrued additional $15,000 in taxes