Sunrise Ltd completed the following transactions during a given year: Transaction Ratio 1. Sold obsolete inventory at
Question:
Sunrise Ltd completed the following transactions during a given year:
Transaction | Ratio |
1. Sold obsolete inventory at cost 2 Redeemed debentures by issuing ordinary shares 3. Issued a share dividend on ordinary shares 4. Declared a cash dividend on ordinary shares 5. Paid the GST owing to the tax office 6. Purchased inventory on credit 7. Sold inventory for cash 8. Wrote off a bad debt against Allowance for Doubtful Debts 9. Collected an account receivable 10. Sold inventory on credit 11. Issued additional ordinary shares for cash 12. Paid trade accounts payable | Profit margin Return on ordinary equity Earnings per share Dividend payout Dividend yield Quick ratio Current ratio Current ratio Receivables turnover Inventory turnover Debt ratio Return on assets |
Required
State whether each transaction would cause the ratio listed with the transaction to increase, decrease or remain unchanged.
DebenturesDebenture DefinitionDebentures are corporate loan instruments secured against the promise by the issuer to pay interest and principal. The holder of the debenture is promised to be paid a periodic interest and principal at the term. Companies who... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett