Question
Indicate the effects of the transaction listed below on each of the following total current assets, working capital (CA-CL), and current ratio. Indicate increase with
Indicate the effects of the transaction listed below on each of the following total current assets, working capital (CA-CL), and current ratio. Indicate increase with +, indicate decrease with and indicate no effect cannot be determined with 0. Assume and initial current ration of greater than 1.0. Total Current Working Current Assets Capital Ratio 1. Food is sold for cash. _____ ______ ______ 2. Equipment is sold less Than its book value. _____ ______ ______ 3. A cash dividend is declared. _____ ______ ______ 4. Treasury stock is purchased. _____ ______ ______ 5. A fully depreciated fixed asset is retired. _____ ______ ______ 6. Equipment is purchased with long-term notes. _____ ______ ______ 7. Utility expenses are paid (they were not previously accrued). _____ ______ ______ 8. A cash dividend is paid. _____ ______ ______
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