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urgent !! please help me . SHOW ME AN EASY FORMULA PLEASE :) # c13p Plum Corporation began the month of May with $1,400,000 of
urgent !! please help me . SHOW ME AN EASY FORMULA PLEASE :)
# c13p
Plum Corporation began the month of May with $1,400,000 of current assets, a current ratio of 2.00:1, and an acid-test ratio of 1.50:1. During the month, it completed the following transactions (the company uses a perpetual inventory system). May 2 Purchased $70,000 of merchandise inventory on credit. May 8 Sold merchandise inventory that cost $45,000 for $120,000 cash. May 10 Collected $24,000 cash on an account receivable. May 15 Paid $30,000 cash to settle an account payable. May 17 Wrote off a $5,000 bad debt againgt the Allowance for Doubtful Accounts account. May 22 Declared a $1 per share cash dividend on its 60,000 shares of outstanding coamon stock. May 26 paid the dividend declared on May 22. May 27 Borrowed $105,000 cash by giving the bank a 30-day, 108 note. May 28 Borrowed $125,000 cash by signing a long-term secured note. May 29 Used the $230,000 cash proceeds from the notes to buy new machinery. Required: Complete the table below showing Plum's (1) current ratio, (2) acid-test ratio, and (3) working capital after each transaction. (Do not round intermediate calculations. Round your ratios to 2 decimal places and the working capitals to nearest dollar amount. Amounts to be deducted should be indicated with a minus sign.) X Answer is not completeStep by Step Solution
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