Reference no: EM13897037

Koto Corporation began the month of June with $ 300,000 of current assets, a current ratio of 2.5:1, and an acid test ratio of 1.4:1. During the month, it completed the following transactions (the company uses a perpetual inventory system). 

June 1 Sold merchandise inventory that cost $ 75,000 for $ 120,000 cash. 3 Collected $ 88,000 cash on an account receivable. 
5 Purchased $ 150,000 of merchandise inventory on credit. 
7 Borrowed $ 100,000 cash by giving the bank a 60 day, 10% note. 
10 Borrowed $ 120,000 cash by signing a long  term secured note. 
12 Purchased machinery for $ 275,000 cash. 
15 Declared a $ 1 per share cash dividend on its 80,000 shares of outstanding common stock.
19 Wrote off a $ 5,000 bad debt against the Allowance for Doubtful Accounts account. 
22 Paid $ 12,000 cash to settle an account payable. 
30 Paid the dividend declared on June 15. 

Required: Prepare a table showing the company's (1) Current ratio, (2) Acid test ratio, (3) Working capital after each transaction. Round ratios to two decimals.