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Could you explain what each event would increase/decrease or stay the same under each ratio etc For each of the following events, identify whether the
Could you explain what each event would increase/decrease or stay the same under each ratio etc
For each of the following events, identify whether the immediate impact of recording the event is to: (Oncrease, (Decrease), or have (N)o impact on each of the ratios. Assume all ratios begin with a value less than 1 (Note: consider only the immediate impact of the described event--including normal closing entries) A B D E F G 1 Impact on each ratio Impact on each aspect of performance Event 2 Quick Debt to Earnings Liquidity Solvency Profitability Ratio Equity Per Share 3 Record use of a rented building for which rent had been Decrease x Increase Increase Decrease x Increase paid in advance X No impact A month went by with a loan outstanding, the interest No impact Increase Increase X Increase x Increase X Increase cost for the month will be paid in 3 months 5 Income taxes on the current month's profit will be paid Increase x Increase Decrease Increase x Increase Decrease next April. 6 A customer pays in advance for future services. Increase Decrease x Increase X Increase Decrease No impact Pay a utility bill that had been accrued in the previous Increase x Decrease Increase x Decrease Decrease x Decrease month X 4 Oo * 7Step by Step Solution
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