Decisions made by management affect the ratios that analysts use to evaluate performance.

Show the impact on current ratio, the quick ratio, and the debt-to-equity ratio. Assume that the

existing ratios are all 2:1.

You can use some "fake numbers" to check your thoughts on the outcome. For example,

Assume the current ratio is 200 to 100 and you buy a short-term investment for 50..write out

the journal entry and see what happens to the current assets and current liabilities

Decisions made by management affect the ratios that analysts use to evaluate performance. Show the impact on current ratio, the quick ratio, and the debt-to-equily ratio. Assume that the existing ratios are all 2:1. You can use some "fake numbers" to check your thoughts on the outcome. For example, Assume the current ratio is 200 to 100 and you buy a short-term investment for 50 ... Write out the journal entry and see what happens to the current assets and current liabilities A. Issuance of long-term bonds B. Issuance of short-term notes C. Payment of account payable D. Purchase of equipment with a 4-year note E. Payment of salaries expense F. Purchase of inventory on account G. Purchase of inventory with cash H. Issuance of common stock for cash 1. Issuance of common stock for PPE