Using the transactions listed in P3-1 for San Mateo Health Care, indicate the effects of each transaction on the liquidity metric Quick Assets and profitability metric Net Income - Accrual Basis.
P3-1
Jan. 1 Received $27,000 from Hillard Company as rent for the use of a vacant office in San Mateo Health Care's building. Hillard paid the rent nine months in advance.
1 Paid $6,000 for a one-year general insurance business policy.
6 Purchased supplies of $1,800 on account.
9 Collected $32,000 for services provided to customers on account.
11 Paid creditors $5,000 on account.
18 Invested an additional $10,000 in the business in exchange for common stock.
20 Billed patients $52,000 for services provided on account.
25 Received $15,000 for services provided to customers who paid cash.
30 Paid expenses as follows: wages, $31,000; utilities, $8,500; rent on medical equipment, $5,300; interest, $200; and miscellaneous, $3,000.
30 Paid dividends of $8,000 to stockholder (Dr. Fields).