Effect of Transactions on Current Position Analysis

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

Cash $$450,000$

Marketable securities $185,000$

Accounts and notes receivable $($net$)335,000$

Inventories $750,000$

Prepaid expenses $42,000$

Accounts payable $240,000$

Notes payable $($short$-$term$)255,000$

Accrued expenses $290,000$

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 $1$

b$.$ Current ratio fill in the blank $2$

c$.$ Quick ratio fill 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.

Transaction Working Capital Current Ratio Quick Ratio

a$.$ Sold marketable securities at no gain or loss, $$75,000.$ $fill in the blank $4$

fill in the blank $5$

fill in the blank $6$

b$.$ Paid accounts payable, $$145,000.$ $fill in the blank $7$

fill in the blank $8$

fill in the blank $9$

c$.$ Purchased goods on account, $$115,000.$ $fill in the blank $10$

fill in the blank $11$

fill in the blank $12$

d$.$ Paid notes payable, $$110,000.$ $fill in the blank $13$

fill in the blank $14$

fill in the blank $15$

e$.$ Declared a cash dividend, $$130,000.$ $fill in the blank $16$

fill in the blank $17$

fill in the blank $18$

f$.$ Declared a common stock dividend on common stock, $$35,000.$ $fill in the blank $19$

fill in the blank $20$

fill in the blank $21$

g$.$ Borrowed cash from bank on a long$-$term note, $$225,000.$ $fill in the blank $22$

fill in the blank $23$

fill in the blank $24$

h$.$ Received cash on account, $$115,000.$ $fill in the blank $25$

fill in the blank $26$

fill in the blank $27$

i$.$ Issued additional shares of stock for cash, $$620,000.$ $fill in the blank $28$

fill in the blank $29$

fill in the blank $30$

j$.$ Paid cash for prepaid expenses, $$14,000.$ $fill in the blank $31$

fill in the blank $32$

fill in the blank $33$