Question
For question 1, 2 and 3, Indicate whether each of the actions listed below will immediately increase (I), decrease (D), or have no effect (N)
For question 1, 2 and 3, Indicate whether each of the actions listed below will immediately increase (I), decrease (D), or have no effect (N) on the ratio shown. Assume each ratio is greater than 1.0 before the action is taken.
1. Purchase of inventory for cash - What is the effect on the Acid Test Ratio
2. Collection of an Accounts Receivable - What is the effect on Current Ratio
3. Payment for Advertising Expense - What is the effect on Total Debt to Equity Ratio
4. What does the debt to equity ratio tell you?
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Exploring Public Relations Global Strategic Communication
Authors: Ralph Tench, Liz Yeomans
4th Edition
1292112182, 9781292112183
