Effect of Transactions on Current Position Analysis

Data pertaining to the current position of Lucroy Industries Inc. follow:

Cash	$450,000
Marketable securities	175,000
Accounts and notes receivable (net)	340,000
Inventories	750,000
Prepaid expenses	44,000
Accounts payable	200,000
Notes payable (short-term)	240,000
Accrued expenses	310,000

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		Current Ratio		Quick Ratio
a. Sold marketable securities at no gain or loss, $60,000.	$
b. Paid accounts payable, $145,000.	$
c. Purchased goods on account, $135,000.	$
d. Paid notes payable, $100,000.	$
e. Declared a cash dividend, $145,000.	$
f. Declared a common stock dividend on common stock, $60,000.	$
g. Borrowed cash from bank on a long-term note, $210,000.	$
h. Received cash on account, $115,000.	$
i. Issued additional shares of stock for cash, $640,000.	$
j. Paid cash for prepaid expenses, $14,000.	$