Problem 1:

Items 1 to 12 are based on the following: Indicate the effect of EACH of the transactions given below on working capital, the current ratio and the acid test ratio. Give the effect in terms of INCREASE, DECREASE or NONE. Write answers in CAPITAL LETTERS, and separate answers with a semicolon. Example : 1. NONE; DECREASE; DECREASE Selected amounts from Cotillard Company's statement of financial position from the beginning of the year 2021 follow: Cash P 70,000 Marketable securities 12,000 Accounts receivable, net 350,000 Inventory 460,000 Prepaid expenses 8,000 Plant and equipment, net 950,000 Accounts payable 200,000 Accrued liabilities 60,000 Notes due within one year 100,000 Bonds payable in 5 years 140,000 In 2021, the company completed the following transactions