Effect of Transactions on Current Position Analysis

Data pertaining to the current position of Lucroy Industries Inc. are as follows:

Cash$800,000Marketable securities550,000Accounts and notes receivable (net)850,000Inventories700,000Prepaid expenses300,000Accounts payable1,200,000Notes payable (short-term)700,000Accrued expenses100,000

Required:

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

a. Working capital$fill in the blank 1b. Current ratiofill in the blank 2c. Quick ratiofill in the blank 3

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.