Indicate the effect that each transaction/event listed here will have on the financial ratio listed opposite it. Use + for increase, - for decrease, and (NE) for no effect. Assume that current assets exceed current liabilities in all cases, both before and after the transaction/event. Transaction/Event Financial Ratio Effect a. Split the common stock 2 for 1. b. Collected accounts receivable. c. Issued common stock for cash. d. Sold treasury stock. e. Accrued interest on a note receivable. f. Sold inventory on account. g. Wrote off an uncollectible account. h. Declared a cash dividend. i. Incurred operating expenses. j. Sold equipment at a loss. Book value per share of common stock Number of days' sales in accounts receivable Total asset turnover Return on equity Current ratio Acid-test ratio Accounts receivable turnover Dividend yield Margin NE Earnings per share
Indicate the effect that each transaction/event listed here will have on the financial ratio listed opposite it. Use + for increase, - for decrease, and (NE) for no effect. Assume that current assets exceed current liabilities in all cases, both before and after the transaction/event. Transaction/Event Financial Ratio Effect a. Split the common stock 2 for 1. b. Collected accounts receivable. c. Issued common stock for cash. d. Sold treasury stock. e. Accrued interest on a note receivable. f. Sold inventory on account. g. Wrote off an uncollectible account. h. Declared a cash dividend. i. Incurred operating expenses. j. Sold equipment at a loss. Book value per share of common stock Number of days' sales in accounts receivable Total asset turnover Return on equity Current ratio Acid-test ratio Accounts receivable turnover Dividend yield Margin NE Earnings per share
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter24: Analysis Of Financial Statements
Section: Chapter Questions
Problem 10SPB: RATIO ANALY SIS OF COMPARATI VE FIN ANCIAL STATE MENT S Refer to the financial statements in Problem...
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