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3- Following is a list of paired ratios and transactions. For each transaction indicate the effect of that transaction on the specific ratio. Use +
3- Following is a list of paired ratios and transactions. For each transaction indicate the effect of that transaction on the specific ratio. Use + for increase, - for decrease, and 0 for no effect. Ratio Debt Ratio of 0.4 Transaction a. A firm is required to capitalize leases previously presented only in notes. b. A firm sells its own common stock. c. A firm has an increase in selling expense with nc change in other expenses. d. A firm writes off a sizeable account receivable. e. A firm pays cash for a valuable patent. Debt/Equity Ratio of 1.12 Times Interest Eamed Ratio of 6.2 to 1 Times Interest Eamed Ratio of 3.6 to 1 Debt to Tangible Net Worth Ratio of 1.3 to 1
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