Ratio's BehaviorTimes-interest-earnedQuick ratioDecreasesMarket-to-book ratioPrice-to-earnings ratioIncreasesInventory turnover ratioNo changeBusiness Transaction 2A $500,000 10-year bank loan is initiated, and the funds are placed in Atlanta Aeronautics Co. (AAC)'s checking account.Financial RatioRatio's BehaviorOperating profit marginDebt ratioCurrent ratioReturn on assetsGross profit margin Business Transaction 1Atlanta Aeronautics Co. (AAC) sells $ 165,000 of merchandise on credit.Financial ACcountCheck if the Account Is Affected by the Specified TransactionInventoryAccounts receivableTaxes payableRetained earningsSalesAccounts payableFinancial RatioRatio's BehaviorTimes-interest-earnedQuick ratioDecreasesMarket-to-book ratioIncreasesPrice-to-earnings ratioInventory turnover ratioNo change

1. Journal Entries - Journal Entries are the recording of transactions of the organization. It is…

Business Transaction 2 A $500,000 10-year bank loan is initiated, and the funds are placed in Atlanta Aeronautics Co. (AAC)'s checking account. nancial Ratio Ratio's Behavior perating profit margin bt ratio rent ratio rurn on assets

Business Transaction 2 A $500,000 10-year bank loan is initiated, and the funds are placed in Atlanta Aeronautics Co. (AAC)'s checking account. nancial Ratio Ratio's Behavior perating profit margin bt ratio rent ratio rurn on assets

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

22nd Edition

ISBN:9781305666160

Author:James A. Heintz, Robert W. Parry

Publisher:James A. Heintz, Robert W. Parry

Chapter15: Financial Statements And Year-end Accounting For A Merchandising Business

Section: Chapter Questions

Problem 4SEB: FINANCIAL RATIOS Based on the financial statements, shown on pages 605606, for McDonald Carpeting...

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Question

Ratio's Behavior
Times-interest-earned
Quick ratio
Decreases
Market-to-book ratio
Price-to-earnings ratio
Increases
Inventory turnover ratio
No change
Business Transaction 2
A $500,000 10-year bank loan is initiated, and the funds are placed in Atlanta Aeronautics Co. (AAC)'s checking account.
Financial Ratio
Ratio's Behavior
Operating profit margin
Debt ratio
Current ratio
Return on assets
Gross profit margin

Business Transaction 1
Atlanta Aeronautics Co. (AAC) sells $ 165,000 of merchandise on credit.
Financial ACcount
Check if the Account Is Affected by the Specified Transaction
Inventory
Accounts receivable
Taxes payable
Retained earnings
Sales
Accounts payable
Financial Ratio
Ratio's Behavior
Times-interest-earned
Quick ratio
Decreases
Market-to-book ratio
Increases
Price-to-earnings ratio
Inventory turnover ratio
No change

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