A corporation began the month with total assets of $$100,000$ and $$60,000$ of total liabilities. Income from operations to date is $$10,000.$

Required: Review the following independent transactions. Indicate the effect they have on the corporation$$s return on assets ratio by placing an $$X$$ in the appropriate column. Provide a brief rationale for each item.

Increase Decrease No Effect

a$.$ Paid $$5,000$ of accounts payable with cash.

b$.$ Declared a $$1$ per share cash dividend on $1,000$ outstanding common shares.

c$.$ Paid a $$6,000$ dividend that was declared one month ago and recorded as a dividend payable at the time.

d$.$ Repaid money to the bank, representing principal $($$$20,000)$ and interest expense $($$$5,000).$

e$.$ Recorded bad debts expense as $1\%$ of accounts receivable $($$$1,000).$

f$.$ Sold inventory on account. Recorded both sales $($$$1,200)$ and cost of goods sold expense $($$$1,000).$

g$.$ Converted a $$500$ account payable into a non$-$current note payable $($ignore interest expense$).$