The Lux Company experiences the following unrelated events and transactions during Year $1.$

The company's existing current ratio is $2$:$1$ and its quick ratio is $1\mathrm{.}2$:$1.$

Lux wrote off $$5,000$ of accounts receivable as uncollectible.

A bank notifies Lux that a customer's check for $$411$ is returned marked insufficient funds. The customer is

bankrupt.

The owners of Lux Company make an additional cash investment of $$7,500.$

Inventory costing $$600$ is judged obsolete when a physical inventory is taken.

Lux declares a $$5,000$ cash dividend to be paid during the first week of the next reporting period.

Lux purchases long$-$term investments for $$10,000.$

Accounts payable of $$9,000$ are paid.

Lux borrows $$1,200$ from a bank and gives a $90-$day, $6\%$ promissory note in exchange.

Lux sells a vacant lot for $$20,000$ that had been used in its operations.

A three$-$year insurance policy is purchased for $$1,500.$

Required:

Separately evaluate the immediate effect of each transaction on the company's:

a$.$ Current ratio.

b$.$ Quick $($acid$-$test$)$ ratio.

c$.$ Working capital.