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BSO, Inc. has assets of $600,000 and liabilities of $450,000 resulting in a debt-to-assets ratio of 0.75. For each of the following transactions, determine whether
BSO, Inc. has assets of $600,000 and liabilities of $450,000 resulting in a debt-to-assets ratio of 0.75. For each of the following transactions, determine whether the debt-to-assets ratio will increase, decrease, or remain the same, and enter the value of the new debt-to-assets ratio.
a. Purchased $20,000 of new inventory on credit
b. Paid accounts payable in the amount of $50,000
c .Recorded accrued salaries in the amount of $100,000.
d.Borrowed $250,000 from a local bank, to be repaid in 90 days.
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