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Effect of Transactions on Current Position Analysis

Data pertaining to the current position of Lucroy Industries Inc. follow:

Cash $432,500 Marketable securities 167,500 Accounts and notes receivable (net) 325,000 Inventories 750,000 Prepaid expenses 46,000 Accounts payable 190,000 Notes payable (short-term) 260,000 Accrued expenses 320,000

Required:

1. Compute (a) the working capital, (b) the current ratio, and (c) the quick ratio. Round ratios to one decimal place

a. Working capital	$fill in the blank 1
b. Current ratio	fill in the blank 2
c. Quick ratio	fill in the blank 3

2. Compute the working capital, the current ratio, and the quick ratio after each of the following transactions and record the results in the appropriate columns. Consider each transaction separately and assume that only that transaction affects the data given. Round ratios to one decimal place.

a. Sold marketable securities at no gain or loss, $60,000.	$fill in the blank 4		fill in the blank 5		fill in the blank 6
b. Paid accounts payable, $105,000.	$fill in the blank 7		fill in the blank 8		fill in the blank 9
c. Purchased goods on account, $130,000.	$fill in the blank 10		fill in the blank 11		fill in the blank 12
d. Paid notes payable, $120,000.	$fill in the blank 13		fill in the blank 14		fill in the blank 15
e. Declared a cash dividend, $130,000.	$fill in the blank 16		fill in the blank 17		fill in the blank 18
f. Declared a common stock dividend on common stock, $35,000.	$fill in the blank 19		fill in the blank 20		fill in the blank 21
g. Borrowed cash from bank on a long-term note, $215,000.	$fill in the blank 22		fill in the blank 23		fill in the blank 24
h. Received cash on account, $115,000.	$fill in the blank 25		fill in the blank 26		fill in the blank 27
i. Issued additional shares of stock for cash, $625,000.	$fill in the blank 28		fill in the blank 29		fill in the blank 30
j. Paid cash for prepaid expenses, $10,000.	$fill in the blank 31		fill in the blank		fill in the blank

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