Ready Corporation began the month of June with $280,000 of current assets, a current ratio of 2.8:1,

Question:

Ready began the month of June with $280,000 of current assets, a current ratio of 2.8:1, and an acid-test ratio of 1.2:1. During the month, it completed the following transactions (the company uses a perpetual inventory system).
June 1 Sold merchandise inventory that cost $62,000 for $101,000 cash.
3 Collected $78,000 cash on an account receivable.
5 Purchased $130,000 of merchandise inventory on credit.
7 Borrowed $90,000 cash by giving the bank a 60-day, 10% note.
10 Borrowed $180,000 cash by signing a long-term secured note.
12 Purchased machinery for $280,000 cash.
15 Declared a $1 per share cash on its 60,000 shares of outstanding common stock.
19 Wrote off a $7,000 bad debt against the Allowance for Doubtful Accounts account.
22 Paid $11,000 cash to settle an account payable.
30 Paid the declared on June 15.

Required
Prepare a table showing the company’s
(1) Current ratio,
(2) Acid-test ratio, and
(3) Working capital after each transaction. Round ratios to two decimals.

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