Question
BSO, Inc. has assets of $650,000 and liabilities of $487,500 resulting in a debt-to-assets ratio of 0.75. For each of the following transactions, determine whether
BSO, Inc. has assets of $650,000 and liabilities of $487,500 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. (Round your answers to 2 decimal places.) Debt-to-Assets Ratio a. Purchased $30,000 of new inventory on credit. b. Paid accounts payable in the amount of $65,000. c. Recorded accrued salaries in the amount of $125,000. d. Borrowed $275,000 from a local bank, to be repaid in 90 days.
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