Effect of Transactions on Current Position Analysis

Data pertaining to the current position of Boole Company are as follows:

Cash	$369,600
Temporary investments	190,400
Accounts and notes receivable (net)	560,000
Inventories	468,200
Prepaid expenses	24,600
Accounts payable	156,800
Notes payable (short-term)	224,000
Accrued expenses	67,200

Instructions:

1. Compute (a) the working capital, (b) the current ratio, and (c) the quick ratio. Round the current ratio and the quick ratio to one decimal place.

Working capital		$ _________________
Current ratio		_________________
Quick ratio		_________________

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 above. Format working capital as whole dollars. Round the current ratio and the quick ratio to one decimal place.

Transaction		Working Capital	Current Ratio	Quick Ratio
a. Sold temporary investments at no gain or loss, $50,000.		$ _________________	_________________	_________________
b. Paid accounts payable, $90,000.		$ _________________	_________________	_________________
c. Purchased goods on account, $56,000.		$ _________________	_________________	_________________
d. Paid notes payable, $112,000.		$ _________________	_________________	_________________
e. Declared a cash dividend, $90,000.		$ _________________	_________________	_________________
f. Declared a common stock dividend on common stock, $27,000.		$ _________________	_________________	_________________
g. Borrowed cash from bank on a long-term note, $224,000.		$ _________________	_________________	_________________
h. Received cash on account, $76,000.		$ _________________	_________________	_________________
i. Issued additional shares of stock for cash, $448,000.		$ _________________	_________________	_________________
j. Paid cash for prepaid expenses, $44,800.		$ _________________	_________________	_________________