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Indicate the effect of the transaction listed below on each of the following: Use + to indicate an increase, - to indicate a decrease and

Indicate the effect of the transaction listed below on each of the following:

Use" + "to indicate an increase, "-" to indicate a decrease and "0 "to indicate no effect. Assume an initial current ratio of more than 1 to 1

Individual transactions often have a significant impact on ratios. This problem will consider the direction of such an impact.

Total Current Assets

Total Current Liabilities

Net Working Capital

Current Ratio

Cash is acquired through issuance of additional common stock

Merchandise is sold for cash (Assume a profit)

A fixed asset is sold for more than book value

Payment is made to trade creditors for previous purchases.

A cash dividend is declared and paid.

A stock dividend is declared and paid.

Cash is obtained through long term loans.

A profitable firm increases its fixed assets depreciation allowance account

Current operating expenses are paid.

Ten-year notes are issued to pay off accounts payable

Accounts receivable are collected.

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