Lim Corporation engaged in the transactions listed in the first column of the following table. Opposite each transaction is a ratio and space to indicate the effect of each transaction on the ratio.

Required

Show that you 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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Transaction . Sold merchandise on account. b. Sold merchandise on account. c. Collected on accounes receivable d. Wrote off an uncollectible account e. Paid on accounts payable f. Declared cash dividend. Increase Decrease None Inventory turnover Reurn on equiry Incurred advertising expense h. Issued stock dividend. i. Issued bonds payable Debt to equiry ratio lntereSt k. Paid previously declared cash dividend. Dividends yield I. Purchased treasury stock m. Recorded depreciation expense