Sung Corporation, a clothing retailer, engaged in the transactions listed in the first column of the table below. Opposite each transaction is a ratio and space to mark the effect of each transaction on the ratio.

Required

Show that understand the effect of business activities on performance measures by placing an X in the appropriate column to show whether the transaction increased, decreased, or had no effect on the indicated ratio.

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Effect on sock for cash Asset tumover Return on equity Inve ory turnover Receivable umover a. Issued comm b. Declared cash dividend. c. Sold treasury stock Current ratio d. Borrowed cash by issuing noe payable. Deb o equiy ratio e. Paid salaries espense .Purchased mcrchandisc for cash Current ratSO equipment for cash. Quick ratio Sold merchandise on account. i. Paid current portion of long-term debe. Retur |. Gave sales discount on assens Profit margin k. Purchased marketable securities for cash. Quick ratio Current ratio Free cash flow l. Declared 5% stock dividend m. Purchased a building