Reference no: EM131536102

Question: Ready Corporation began the month of June with $280,000 of current assets, a current ratio of 2.8:1, and an acid-test ratio of 1.2:1. During the month, it completed the following transactions (the company uses a perpetual inventory system). June 1 Sold merchandise inventory that cost $62,000 for $101,000 cash. 3 Collected $78,000 cash on an account receivable. 5 Purchased $130,000 of merchandise inventory on credit. 7 Borrowed $90,000 cash by giving the bank a 60-day, 10% note. 10 Borrowed $180,000 cash by signing a long-term secured note. 12 Purchased machinery for $280,000 cash. 15 Declared a $1 per share cash dividend on its 60,000 shares of outstanding common stock. 19 Wrote off a $7,000 bad debt against the Allowance for Doubtful Accounts account. 22 Paid $11,000 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, and

(3) working capital after each transaction. Round ratios to two decimals.