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In the right-hand column below, certain financial ratios are listed. To the left of each ratio is a business transaction or event relating to the

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In the right-hand column below, certain financial ratios are listed. To the left of each ratio is a business transaction or event relating to the operating activities of Delta Company (cach transaction should be considered independently). Ratio Current ratio Acid-test ratio Return on equity Times interest earned Current ratio Dividend payout ratio Business Transaction or Event 1. Declared a cash dividend. 2. Sold inventory on account at cost. 3. Issued bonds with an interest rate of 8%. The company's return on assets is 10% 4. Net income decreased by 10% between last year and this year. Long-term debt remained unchanged. 5. Paid a previously declared cash dividend, 6. The market price of the company's common stock dropped from $24.50 to $20.00. The dividend paid per share remained unchanged. 7. Obsolete inventory totaling $100,000 was written off as a loss. 8. Sold inventory for cash at a profit 9. inged customer credit terms from 2/10, 1/30 to 2/15, 1/30 to comply with a change in Industry practice 10. Issued a stock dividend to common stockholders. 11. The market price of the company's common stock increased from $24.50 to $30.00 12. Paid $40,000 on accounts payable 13. Issued a stock dividend to common stockholders 14. Paid accounts payable. 15. Purchased inventory on account. 16. Wrote off an uncollectible account against the Allowance for Bad Debts 17. The market price of the company's common stock increased from $24 50 to $30.00 Earnings per share remained unchanged 18. The market price of the company's common stock increased from $2450 to $30.00 The dividend paid per share remained unchanged Inventory turnover ratio Debt-to-equity ratio Accounts receivable turnover ratio Book value per share Book value per share Working capital Earnings per share Debt-to-equity ratio Acid-test ratio Current ratio Price-earnings ratio Dividend yield ratio Required: Indicate the effect that each business transaction or event would have on the ratio listed opposite to it. State the effect in terms of increase, decrease, or no effect on the ratio involved, and give the reason for your answer. In all cases, assume that the current assets exceed the current liabilities both before and after the event or transaction. Use the following format for your answers: Effect on Ratio Reason for Increase, Decrease, or No Effect 1 Etc

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