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Plum Corporation began the month of May with $800,000 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 $60,000 of merchandise inventory on credit. 8 Sold merchandise inventory that cost $60,000 for $160,000 cash 10 Collected $28,000 cash on an account receivable. 15 Paid $30,500 cash to settle an account payable. 17 Wrote off a $5,000 bad debt against the Allowance for Doubtful Accounts account. 22 Declared a $1 per share cash dividend on its 69,000 shares of outstanding common stock. 26 Paid the dividend declared on May 22 27 Borrowed $125,000 cash by giving the bank a 30-day, 10% note. 28 Borrowed $145,000 cash by signing a long-term secured note. 29 Used the $270,000 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. Subtracted amount should be indicated with a minus sign.) ransaction Current Assets Quick Assets Current Liabilities Current Ratio Acid-Test Ratio Working Capital 1.50 $ Beginning May 2 $800,000 $ 600,000 $ 400,000 2.00 400,000 Balance 800,000 400,000 May 8 Balance May 10 Balance May 15 Balance May 17 Balance May 22 Balance May 26 Balance May 27 Balance May 28 Balance May 29 Balance

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