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Problem 13-3A (Algo) Transactions, working capital, and liquidity ratios LO P3 Plum Corporation began the month of May with $1,000,000 of current assets, a current ratio of 2.70:1, and an acid-test ratio of 170.1 During the month, it completed the following transactions (the company uses a perpetual inventory system). May 2 Purchased $55,060 of nerchandise inventory on credit. May 8 Sold aerchandise inventory that cost $45,000 for $150,600 cash. May 18 collected 521,000 cash on an account recelvable. May is Poid $29,060 cash to settle an account payable, May 17 Wrote off a $5,000 bad debt against the Allowance for Doubtful Accounts account. May 22 Declared a $1 per share eash dividend on Its 65,000 shares of outstanding connon stock. May 26 paid the dividend declared on May 22. May 27 Borrowed 590,000 cash by giving the bank a 30-day, 10x note. May 28 Borrowed 5110,000 cash by signing a long-tern secured note. May 29 used the 5200,000 cash proceeds fron the notes to buy new nachinery. Required: Complete the table below showing Plum's (1) current ratio, (2) acid-test ratio, and (3) working capital after each transaction. Note: Do not round intermediate calculations. Round your rotios to 2 decimal places and the working copitals to nearest dollar amount. Amounts to be deducted should be indicated with o minus sign. Required: Complete the table below showing Plum's (1) current ratio, (2) acid-test ratio, and (3) working capital after each transaction. Note: 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

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