1. Indicate the effects of the following transactions listed in the following table on TCA, current ratio, and net income. Assume an initial current ration of more than

TCA Current ration Effect on net income

1. Merchandise is sold on credit. + + +
2. Advances are made to Insurance company.
3. A fully depreciated asset was sold for $400 .
4. A fixed asset is sold for less than book value.
5. Sales tax due for the previous is paid.
6. Account receivables are collected.
7. 1-year notes are issued to pay off accounts payable.
8. Borrowed cash of $40,000 from MOs Bank.
9. Purchased equipment for $16,800 cash.
10. Sold $5,000 of adverting services, on account, to customers.