Effect of transactions on current ratio and working capital
Sherman Manufacturing has a current ratio of 3:1 on December 31, 2011. Indicate whether each of the following transactions would increase (+), decrease (), or have no affect (NA) Sherman’s current ratio and its working capital.
Required
 a. Paid cash for a trademark.
 b. Wrote off an uncollectible account receivable.
 c. Sold equipment for cash.
 d. Sold merchandise at a profit (cash).
 e. Declared a cash dividend.
 f. Purchased inventory on account.
 g. Scrapped a fully depreciated machine (no gain or loss).
 h. Issued a stock dividend.
 i. Purchased a machine with a long-term note.
 j. Paid a previously declared cash dividend.
 k. Collected accounts receivable.
 l. Invested in current marketable securities.