Please Solve In 15mins I will Thumbs-up Indicate the effect that each transaction/event listed here will have on the financial ratio listed opposite it. Use +E for increase,- fordecrease, and (NE) for no effect. Assume that current assets exceed current liabilities in all cases, both before and after thetransaction/event.Transaction/EventFinancial RatioEffecta. Purchased inventory on accountNumber of days' sales in inventoryb. Sold inventory for cash, at a profit.Inventory turnoverc Issued a 10% stock dividend.Earnings per shared. Issued common stock for cash.Debt ratioe. Sold land at a gain.Return on investmentt Purchased treasury stock for cash.Debt/equity ratiog Accrued interest on a note payable.Times interest eamedh. Accrued wages that have been eamed by employeesCurrent ratioLPurchased equipment for cash.Plant and equipment fumoverIssued bonds at an interest rate that is less than the company's ROLRetun on equty

There are many financial ratios used by businesses to analyze their performance in the current year.…

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. Purchased inventory on account Number of days' sales in inventory Inventory turnover Earnings per share b. Sold inventory for cash, at a profit. c. Issued a 10% stock dividend. d. Issued common stock for cash. Debt ratio e. Sold land at a gain. Return on investment CPurchased treasury stock for cash. Debtiequity ratio g Accrued interest on a note payable. Times interest eamed h. Accrued wages that have been eamed by employees Current ratio LPurchased equipment for cash. Plant and equipment fumover Issued bonds at an interest rate that is less than the company's ROI. Return on equty

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. Purchased inventory on account Number of days' sales in inventory Inventory turnover Earnings per share b. Sold inventory for cash, at a profit. c. Issued a 10% stock dividend. d. Issued common stock for cash. Debt ratio e. Sold land at a gain. Return on investment CPurchased treasury stock for cash. Debtiequity ratio g Accrued interest on a note payable. Times interest eamed h. Accrued wages that have been eamed by employees Current ratio LPurchased equipment for cash. Plant and equipment fumover Issued bonds at an interest rate that is less than the company's ROI. Return on equty

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 48CE

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