15 In the left hand column, a series of independent transactions is listed In the right hand column, a series of ratios is listed Required For each transaction indicate whether the ratio will increase (I), decrease (D), or remain unchanged (N C) Assume all ratios are greater than 1 1 before each transaction where applicable ( 1 Mark Each ) 9 Marks Transaction Ratio Eect on ratio Declared a cash dividend Current ratio Decrease (D) Wrote o an uncollectible account receivable Accounts receivable collection period Purchased inventory on account Acid test ratio Decrease (D) Issued 10 year bonds to acquire property, plant, and equipment Return on total assets Issued additional shares for cash Debt to shareholders equity ratio Declared a share dividend on common shares Earnings per share Purchased supplies on account Current ratio Paid a current creditor in full Acid test ratio Paid an account payable Number of days of sales in inventory

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15 In the left hand column, a series of independent transactions is listed  In the right hand column, a series of ratios is listed  Required   For each transaction indicate whether the ratio will increase (I), decrease (D), or remain unchanged (N C)  Assume all ratios are greater than 1 1 before each transaction where applicable  ( 1 Mark Each ) 9 Marks Transaction Ratio Eect on ratio Declared a cash dividend Current ratio Decrease (D) Wrote o an uncollectible account receivable Accounts receivable collection period Purchased inventory on account Acid test ratio Decrease (D) Issued 10 year bonds to acquire property, plant, and equipment Return on total assets Issued additional shares for cash Debt to shareholders equity ratio Declared a share dividend on common shares Earnings per share Purchased supplies on account Current ratio Paid a current creditor in full Acid test ratio Paid an account payable Number of days of sales in inventory

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15 In the left-hand column, a series of independent transactions is listed. In the right-hand column, a series of ratios is listed. Required : For

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Transaction	Ratio	Eect on ratio
Declared a cash dividend	Current ratio	Decrease (D)
Wrote-o an uncollectible account receivable	Accounts receivable collection period
Purchased inventory on account	Acid-test ratio	Decrease (D)
Issued 10-year bonds to acquire property, plant, and equipment	Return on total assets
Issued additional shares for cash	Debt to shareholders equity ratio
Declared a share dividend on common shares	Earnings per share
Purchased supplies on account	Current ratio
Paid a current creditor in full	Acid-test ratio
Paid an account payable	Number of days of sales in inventory