Identify affected ratios (Learning Objective 4)
Lance Berkman is the controller of Saturn, a dance club whose year-end is December 31. Berkman prepares checks for suppliers in December and posts them to the appropriate accounts in that month. However, he holds on to the checks and mails them to the suppliers in January. What financial ratio(s) are most affected by the action? What is Berkman’s purpose in undertaking this activity?