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.

Debentures
Debenture 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

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