Question & Answer: s Accounts receivable, net Inventory Prepaid expenses Accounts payable Notes due within one ye…..

Denna Company’s working capital accounts at the beginning of the year follow: Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses Accounts payable Notes due within one year Accrued liabilities $ 57,000 $ 29,500 318,800 $ 426,200 s 5,400 $ 176,600 S 74,000 $ 48,300 During the year, Denna Company completed the following transactions: x. Paid a cash dividend previously declared, $17,000. a. Issued additional shares of common stock for cash, $174,000. b. Sold inventory costing $59,600 for $87,000, on account. c. Wrote off uncollectible accounts in the amount of $4,800, reducing the accounts receivable balance accordingly d. Declared a cash dividend, $17,000. e. Paid accounts payable, $79,200. f. Borrowed cash on a short-term note with the bank, $40,500. g. Sold inventory costing $21,090 for $14,060 cash. h. Purchased inventory on account, $40,250 i. Paid off all short-term notes due, $114,500. j. Purchased equipment for cash, $64,600. k. Sold marketable securities costing $19,500 for cash, $16,250. . Collected cash on accounts receivable, S$65,700. Required 1. Compute the following amounts and ratios as of the beginning of the year (Round your ratios to 2 decimal places.) a. Working capital b. Current ratio c. Acid-test ratio