Selected balance sheet accounts for Tibbetts Company on September 30,2016 are as follows:

Cash.............................................................$48,000

Marketable securities.....................................87,000

Accounts receivable, net.............................129,000

Inventory....................................................135,000

Prepa d exp crises.........................................21,000

Total current assets...................................$400,000

Accounts payable.....................................$147,000

Other accrued liabilities...............................33,000

Short term debt............................................60,000

Total current liabilities................................$240,000

Required:

a. Calculate the working capital, current ratio, and acid-test ratio for Tibbetts Company as of September 30. 2016.

b. Summarized here are the transactions/events that took place during the fiscal year ended September 30, 2017. Indicate the effect of each item on Tibbetts Company's working capital, current ratio, and acid-test ratio. Use + for increase, - for decrease, and (Nil) for no effect.

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Working Current Acid-Test Capital Transaction/Event Ratio 0. Example: Paid accounts payable, $585,000. 1. Credit sales for the year amourted to $360,000. The cost of goods sold was $234,000. 2. Collected accounts receivable, $378,000 3. Purchased inventory on account, $252,000 4. Issued 250 shares of common stock for $54 per 5. Wrote off $10,500 of uncollectible accounts using the allowance for bad debts Declared and pad a cash dividend, $30,000. Sold marketable securities costing $39,000 for $46,500 in cash. Recorded insurance expense for the yer, $18,000 The premiumfor the policy was paid in June 2016. 6. 7. 8. 9. Borrowed cash on a short term bank loan, $15,000. 10. Repaid principal of $60,000 and nterest of $4,500 on a long-term bank loan.