How do I set this up? This is a few questions stuck together. Count as multiple questions I think. 4-12 Indicate the effect of the transactions listed in the following table on total current assets, current ration, and net income. Use (+) to indicate an increase, (-) to indicate a decrease, and (0) to indicate either no effect or an indeterminate effect. Be prepared to state any necessary assumptions and assume an initial current ratio of more than 1.0. Table for 4-12 Total Current Assets Current Ratio Effect on Net Income a Cash is acquired through issuance of additional stock. b Merchandise is sold for cash. c Federal income tax due for the previous year is paid. d A fixed asset is sold for less than book value. e A fixed asset is sold for more than book value. f Merchandise is sold on credit. g Payment is made to trade creditors for previous purchases. h A cash dividend is declared and paid. i Cash is obtained through short-term bank loans. j Short-term notes receivable are sold at a discount. k Marketable securities are sold below cost. l Advances are made to employees m Current operating expenses are paid. n Short-term promissory notes are issued to trade creditors in exchange for past due accounts payable. o 10-Year notes are issued to pay off accounts payable. p A fully depreciated asset is retired. q Accounts receivable are collected. r Equipment is purchased with short-term notes. s Merchandise is purchased on credit. t The estimated taxes payable are increased.

How do I set this up? This is a few questions stuck together. Count as multiple questions I think. 4-12 Indicate the effect of the transactions listed in the following table on total current assets, current ration, and net income. Use (+) to indicate an increase, (-) to indicate a decrease, and (0) to indicate either no effect or an indeterminate effect. Be prepared to state any necessary assumptions and assume an initial current ratio of more than 1.0. Table for 4-12 Total Current Assets Current Ratio Effect on Net Income a Cash is acquired through issuance of additional stock. b Merchandise is sold for cash. c Federal income tax due for the previous year is paid. d A fixed asset is sold for less than book value. e A fixed asset is sold for more than book value. f Merchandise is sold on credit. g Payment is made to trade creditors for previous purchases. h A cash dividend is declared and paid. i Cash is obtained through short-term bank loans. j Short-term notes receivable are sold at a discount. k Marketable securities are sold below cost. l Advances are made to employees m Current operating expenses are paid. n Short-term promissory notes are issued to trade creditors in exchange for past due accounts payable. o 10-Year notes are issued to pay off accounts payable. p A fully depreciated asset is retired. q Accounts receivable are collected. r Equipment is purchased with short-term notes. s Merchandise is purchased on credit. t The estimated taxes payable are increased.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter13: Financial Statement Analysis

Section: Chapter Questions

Problem 13.1KTQ

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How do I set this up? This is a few questions stuck together. Count as multiple questions I think.

4-12 Indicate the effect of the transactions listed in the following table on total current assets, current ration, and net income. Use (+) to indicate an increase, (-) to indicate a decrease, and (0) to indicate either no effect or an indeterminate effect. Be prepared to state any necessary assumptions and assume an initial current ratio of more than 1.0.

	Table for 4-12	Total Current Assets	Current Ratio	Effect on Net Income

a	Cash is acquired through issuance of additional stock.
b	Merchandise is sold for cash.
c	Federal income tax due for the previous year is paid.
d	A fixed asset is sold for less than book value.
e	A fixed asset is sold for more than book value.
f	Merchandise is sold on credit.
g	Payment is made to trade creditors for previous purchases.
h	A cash dividend is declared and paid.
i	Cash is obtained through short-term bank loans.
j	Short-term notes receivable are sold at a discount.
k	Marketable securities are sold below cost.
l	Advances are made to employees
m	Current operating expenses are paid.
n	Short-term promissory notes are issued to trade creditors in exchange for past due accounts payable.
o	10-Year notes are issued to pay off accounts payable.
p	A fully depreciated asset is retired.
q	Accounts receivable are collected.
r	Equipment is purchased with short-term notes.
s	Merchandise is purchased on credit.
t	The estimated taxes payable are increased.

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