Problem: Three commonly used measures of liquidity are the working capital, current ratio and the acid-test ratio. For each of the following transactions, determine whether the measure will increase, decrease, or not change. Assume that both ratios are higher than 1 and that working capital is positive. A customer makes a partial payment of $35,000 towards the amount owed on his accounts receivable. The accounts receivable ending balance for $350,000 includes one large credit balance for $70,000 for a customer. The accountant will report the credit balance as a current liability. Merchandise costing $110,000, was sold on account for $140,000. The company uses the perpetual inventory system. Dividends for $115,000 that were previously declared are now paid in cash to the shareholders. Depreciation expense is recorded as an adjusting entry. The company purchased $90,000 of inventory on account.