Problem $11\mathrm{.}16$

LO $11-1$

Effect of transactions on liquidity measures Selected balance sheet accounts for Tibbetts Company on September $30,2022,$

are as follows:

Required:

a$.$ Calculate the working capital, current ratio, and acid$-$test ratio for Tibbetts Company as of September $30,2022.$

b$.$ Summarized here are the transactions$/$events that took place during the fiscal year ended September $30,2023.$ Indicate

the effect of each item on Tibbetts Company's working capital, current ratio, and acid$-$test ratio. Use $+$ for increase, $-$ for

decrease, and $($NE$)$ for no effect. $[$Hint: It may be helpful to use the horizontal model or to record the journal entry$($ies$)$

for each item before considering the effects on liquidity measures.$]$