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How do you solve this? correct questions only please! M10-14 (Algo) Analyzing the Impact of Transactions on the Debt-to-Assets Ratio (LO 10-5) BSO, Incorporated, has
How do you solve this? correct questions only please!
M10-14 (Algo) Analyzing the Impact of Transactions on the Debt-to-Assets Ratio (LO 10-5) BSO, Incorporated, has assets of $640,000 and abilities of $480,000, resulting in a debt-to-assets ratio of 0.75. For each of the following transactions, determine whether the debt-to-assets ratio will increase, decrease, or remain the same, and enter the value of the new debt-to-assets ratio. Each item is independent. (Round your answers to 2 decimal places.) a. Purchased $25,000 of new inventory on credit b. Paid accounts payable in the amount of $62,000 c. Recorded accrued datories in the amount of $120,000 d. Borrowed $270,000 from a local bank, to be repaid in 90 days Debt-to-Assets Ratio Increase Decrease increase Increase Step by Step Solution
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