In the right-hand column below, certain fnancial ratios are listed. To the left of each ratio is a business transaction or event relating to the operating activities of Flatiron Company Ratio Business Transaction or Event 1. Declared a cash dividend 2. Sold inventory on account at cost 3. Issued bonds with an inerest rate of 9%. The company's return on Current ratio Acid-test (quick) ratio Return on common stockholders' equity assets is 12%. 4 Net income decreased by 10% between last year and his year Times interest earned Current ratio Long-term debt remained unchanged 5. Paid a previously declared cash dividend 6. The market price of the company's common stock dropped from 22? to 18 The dividend paid per share remained unchanged 7, Obsolete inventory totaling $125,000 was written off as a loss. 8. Sold inventory for cash at a profit. 9. Changed customer credit terms from 2/10, n/15 to 2/15, n/30 to Dividend payout ratio Inventory turnover rabio Debt-to-equity ratio Accounts receivable comply with a change in industry practice 10. Issued a common stock dividend on common stock tunover ratio Book value per share increased from 11. The market price of the company's common stock Book value per share Working capital Earnings per share 22% to 32% 12. Paid $55,000 on accounts payable 13, Issued a common stock dividend to common stockholders 14. Paid accounts payable. 15. Purchased inventory on credit terms. 16. Wrote off an uncollectible account against the Allowance for Bad Debts 221% to 32h Earnings per share remained unchanged 22's to 32%. The dividend paid per share remained unchanged. Acid-test (quick) ratio Current ratio Price earnings ratio Dividend yield ratio 17. The market price of the company's common stock increased from fromDwidend yield ratio 18. The market price of the company's common stock increased from Required: Indicate the effect that each business transaction or event would have on the ratio listed opposite to t State the effect in terms of increase, decrease, or no effect on the ratio involved. In all cases, assume that the current assets exceed the current liabilities both before and after the event or transaction. Ratio Effect on Ratio 1. Current ratio 2. Acid-test (quick) ratio 3. Return on common stockholders' equity 4. Times interest earned 5. Current ratio 6. Dividend payout ratio 7. Inventory turnover ratio 8. Debt-to-equity rato 9. Accounts receivable turnover ratio 10 Book value per share 11. |Book value per share 12. Working capital 13. Earnings per share 14. Debt-to-equity ratio 15. Acid-test (quick) ratio 16. Current ratio s ratio 18. Dividend yield ratio In the right-hand column below, certain fnancial ratios are listed. To the left of each ratio is a business transaction or event relating to the operating activities of Flatiron Company Ratio Business Transaction or Event 1. Declared a cash dividend 2. Sold inventory on account at cost 3. Issued bonds with an inerest rate of 9%. The company's return on Current ratio Acid-test (quick) ratio Return on common stockholders' equity assets is 12%. 4 Net income decreased by 10% between last year and his year Times interest earned Current ratio Long-term debt remained unchanged 5. Paid a previously declared cash dividend 6. The market price of the company's common stock dropped from 22? to 18 The dividend paid per share remained unchanged 7, Obsolete inventory totaling $125,000 was written off as a loss. 8. Sold inventory for cash at a profit. 9. Changed customer credit terms from 2/10, n/15 to 2/15, n/30 to Dividend payout ratio Inventory turnover rabio Debt-to-equity ratio Accounts receivable comply with a change in industry practice 10. Issued a common stock dividend on common stock tunover ratio Book value per share increased from 11. The market price of the company's common stock Book value per share Working capital Earnings per share 22% to 32% 12. Paid $55,000 on accounts payable 13, Issued a common stock dividend to common stockholders 14. Paid accounts payable. 15. Purchased inventory on credit terms. 16. Wrote off an uncollectible account against the Allowance for Bad Debts 221% to 32h Earnings per share remained unchanged 22's to 32%. The dividend paid per share remained unchanged. Acid-test (quick) ratio Current ratio Price earnings ratio Dividend yield ratio 17. The market price of the company's common stock increased from fromDwidend yield ratio 18. The market price of the company's common stock increased from Required: Indicate the effect that each business transaction or event would have on the ratio listed opposite to t State the effect in terms of increase, decrease, or no effect on the ratio involved. In all cases, assume that the current assets exceed the current liabilities both before and after the event or transaction. Ratio Effect on Ratio 1. Current ratio 2. Acid-test (quick) ratio 3. Return on common stockholders' equity 4. Times interest earned 5. Current ratio 6. Dividend payout ratio 7. Inventory turnover ratio 8. Debt-to-equity rato 9. Accounts receivable turnover ratio 10 Book value per share 11. |Book value per share 12. Working capital 13. Earnings per share 14. Debt-to-equity ratio 15. Acid-test (quick) ratio 16. Current ratio s ratio 18. Dividend yield ratio