Halifax Fisheries Inc. began the month of March with $760,000 of current assets, a current ratio of 2.5 to 1, and a quick ratio of 1.1 to 1. During the month, it completed the following transactions:


Mar. 6 Bought $86,000 of merchandise on account. (The company uses a perpetual inventory system.)
 11 Sold merchandise that cost $70,000 for $118,000.
 15 Collected a $30,000 account receivable.
 17 Paid a $32,000 account payable.
 19 Wrote off a $14,000 bad debt against Allowance for Doubtful Accounts.
 24 Declared a $1.75 per share cash dividend on the 41,000 outstanding common shares.
 28 Paid the dividend declared on March 24.
 29 Borrowed $90,000 by giving the bank a 30-day, 19% note.
 30 Borrowed $110,000 by signing a long-term secured note.
 31 Used the $200,000 proceeds of the notes to buy additional machinery.

Required:
Prepare a schedule showing Halifax Fisheries Inc.’s current ratio, quick ratio, and working capital after each of the transactions. (Round ratios to 2 decimal places and other final answers to nearest whole dollar.) 

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Step 1 The schedule is calculated as Current Quick Current Acide working Current Tr... View the full answer