- DOTY I. GO . DO > One Creste O . www. 00 tock OM Effect of Transactions on Current Position Analysis Data pertaining to the current position of Lucroy Industries Inc. follow: Cash Marbete Accounts and notes recabinet) Inventories 175.000 110.000 700.000 40,000 180.000 245.000 Current Ratio Quick Rate Accounts Notes totam Accrued expenses Required: 1. Compute (a) the working capital, (b) the current ratio, and (c) the quick ratio. Round ratios to one decimal place. w capital 957.500 Current ratie Quickie 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. Transaction Working Capital a. Sold marketable securities at no gain or loss, $80,000. b. Paid accounts payable, $120,000. c. Purchased goods on account, $105,000. d. Paid notes payable, $115,000. Declared a cash dividend, $135,000 f. Declared a common stock dividend on common stock, $30,000 9. Borrowed cash from bank on a long-term note, $225,000. h. Received cash on account, $130,000. i. Issued additional shares of stock for cash, $645,000. 1. Paid cash for prepaid expenses, $15,000. O QUOD I IIIIII I IIIII 1. a. For working capital, subtract current liabilities from current assets. b. For the current ratio, divide current assets by current liabilities. c. For the quick ratio, divide quick assets by current liabilities. Quick assets are cash, marketable securities, and receivables