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I basically konw the answer but I also need explanations on why the answer is correct. If a question requires a numerical answer, provide a
I basically konw the answer but I also need explanations on why the answer is correct. If a question requires a numerical answer, provide a formula that helps to solve it.
Increase or Decrease and WHY?
ationships 1. Earnings that are retained and not distributed as dividends a firm's equity. 2. Retaining earnings and using the proceeds to retire debt the firm's total assets. 3. The price of a stock when the stock trades on the ex-div date. 4. A stock dividend the number of shares outstanding and the price of the stock. 5. A 2-for-1 stock split the firm's assets, the firm's liabilities, and the firm's equity. 6. A 1-for-10 stock split the price of the stock. 7. An increase in earnings the payout ratio. 8. A 4-for-3 stock split earnings per share. 9. A stock repurchase a firm's liabilities. 10. If a firm repurchases stock, its equity 11. If a firm issues a long-term bond and uses the proceeds to reduce short-term loans from a bank, the current ratio and quick ratio 12. If a firm collects an account receivable, the current ratio 13. A decrease in inventory inventory turnover and fixed asset turnover. 14. Operating at a loss the debt ratio. 15. An increase in income taxes times-interest-earned. 16. An increase in days sale outstanding the firm's liquidity position. 17. An increase in interest expense the operating profit margin and the net profit margin. 18. An increase in depreciation expense earnings and cash flow 19. A(n) in an asset is a cash inflow. 20. A(n) in liabilities is a cash inflow and a(n). in equity is a cash outflow
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