Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Company A currently has assets of $200,000, liabilities of $120,000, sales of $200,000, and expenses of $180,000. Select one of ' Increase', ' Decrease', '

Company A currently has assets of $200,000, liabilities of $120,000, sales of $200,000, and expenses of $180,000.

Select one of ' Increase', ' Decrease', ' No Impact', and ' Unknown' for the impact of the following transactions on ROA, Profit Margin, and Debt to Asset ratios. (Situation does not accumulate)

1. Company A purchases $20,000 of the building on credit. 1) Return on Asset 2) Profit Margin 3) Debt to Asset Ratio

2. Company A paid $40,000 in cash for building insurance and processed the current cost. 1) Return on Asset 2) Profit Margin 3) Debt to Asset Ratio

3. Company A received $100,000 in one-year rent from customers and recorded it as revenue.

1) Return on Asset 2) Profit Margin 3) Debt to Asset Ratio

4. Company A declared and paid a cash dividend of $5,000.

1) Return on Asset 2) Profit Margin 3) Debt to Asset Ratio

5. Company A issued new shares to attract $50,000 from investors, of which $20,000 was used for borrowing.

1) Return on Asset 2) Profit Margin 3) Debt to Asset Ratio

6. Company A depreciated its facility assets by USD 4,000.

1) Return on Asset 2) Profit Margin 3) Debt to Asset Ratio

7. Company A purchased consumables for building management and paid $1,000 in cash.

1) Return on Asset 2) Profit Margin 3) Debt to Asset Ratio

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions