4-12 Indicate the effects of the transactions listed in the following table on total current assets, current ratio, and net income. Use (+) to indicate an increase, (-) to indicate a decrease, and (0) to indicate either no effect or an indeterminate effect. Be prepared to state any necessary assumptions and assume an initial current ration of more than 1.0

a. Cash is aquired through issurance of additional common stock. Total Current Assets Current Ratio Effect on Net Income

b. Merchandise is sold for cash. Total Current Assets Current Ratio Effect on Net Income

c. Federal income tax due for the previous year is paid. Total Current Assets Current Ratio Effect on Net Income

d. A fixed asset is sold for less than book value. Total Cuurent Assets Current Ratio Effect on Net Income

e. A fixed asset is sold for more than book value. Total Cuurent Assets Current Ratio Effect on Net Income

f. Merchandise is sold on credit Total Current Assets Current Ratio Effect on Net Income

g. Payment is made to trade credtors for previous purchases. Total Current Assets Current Ratio Effect on Net Income

h. A cash dividend is declared and paid. Total Current Assets Current Ratio Effect on Net Income

i. Cash is obtained through short-term bank loans. Total Current Assets Current Ratio Effect on Net Income

j. Short-term notes receivable are sold at a discount. Total Current Assets Current Ratio Effect on Net Income

k. Marketable securities are sold below cost. Total Current Assets Current Ratio Effects on Net Income

l. Advances are made to employees. Total Current Asset Current Ratio Effects on Net Income

m. Current operating expenses are paid. Total Current Asset Current Ratio Effect on Net Income

n. Short-term promissory notes are issued to trade creditors in

exchange for past due accounts payable. Total Current Asset Curent Ratio Effect on Net Income

o. 10-year notes are issued to pay off accounts payable. Total Current Asset Current Ratio Effect on Net Income

p. A fully depreciated asset is retired. Total Current Asset Current Ratio Effect on Net Income

q. Accounts receivable are collected. Total Current Asset Current Ratio Effect on Net Income

r. Equipment is purchased with short-term notes. Total Current Asset Current Ratio Effect on Net Income

s. Merchandise is purchased on credit. Total Current Asset Current Ratio Effect on Net Income

t. The estimated taxes payable are increased. Total Current Asset Current Ratio Effect on Net Income