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Help need done asap PROBLEM III (25 points) Instructions: Indicate the effects of the transactions listed below on each of the following: Use a +
Help need done asap
PROBLEM III (25 points) Instructions: Indicate the effects of the transactions listed below on each of the following: Use a "+" to indicate an increase , a"-" to indicate a decrease and a "O" to indicate no effect. Assume an initial current ratio of greater than 1.0, a Debt Ratio of 50% and a Debt-to- Worth of 1.0 x. Transaction Net Working Capital Current Ratio Debt Ratio Net Income Stock- holders Equity 1. A cash dividend is declared and paid 2. Cash is obtained through long-term bank loans. (Do not consider interest) 3. Equipment is purchased with short-term notes. (Do not consider interest) 4. Merchandise is purchased on credit 5. A fixed asset is sold for more than book value 6. A stock split takes effect 7. Current opera- ting expenses, not previously recognized are paid 8. A firm makes a long- term cash investment in the stock of a non-consolidated subsidiary 9. A firm recognizes depreciation expense Transaction Net Working Capital Current Ratio Debt Ratio Net Income Stock- holders Equity 10. A firm refinances short-term notes with long-term notes. (Ignore interest)Step by Step Solution
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