Comprehensive analysis The following is a list of transactions. a. Paid cash for short-term marketable securities. b.

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Comprehensive analysis The following is a list of transactions.

a. Paid cash for short-term marketable securities.

b. Purchased a computer, issuing a short-term note for the purchase price.

c. Purchased factory equipment, issuing a long-term note for the purchase price.

d. Sold merchandise on account at a profit.

e. Paid cash on accounts payable.

f. Received cash from issuing common stock.

g. Sold a factory for cash at a profit.

h. Purchased raw materials on account.

i. Paid cash for property taxes on administrative buildings.

Required Indicate the effect of each of the preceding transactions on

(a) the quick ratio,

(b) working capital,

(c) stockholders’ equity,

(d) the debt/equity ratio,

(e) retained earnings.

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Fundamental Managerial Accounting Concepts

ISBN: 9780073526799

4th Edition

Authors: Thomas Edmonds, Bor-Yi Tsay, Philip Olds

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