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M10-14 (Algo) Analyzing the Impact of Transactions on the Debt-to-Assets Ratio [LO 10-5] BSO, Incorporated, has assets of $680,000 and liabilities of $510,000, resulting
M10-14 (Algo) Analyzing the Impact of Transactions on the Debt-to-Assets Ratio [LO 10-5] BSO, Incorporated, has assets of $680,000 and liabilities of $510,000, resulting in a debt-to-assets ratio of 0.75. For each of the following transactions, determine whether the debt-to-assets ratio will increase, decrease, or remain the same, and enter the value of the new debt-to-assets ratio. Each item is independent. (Round your answers to 2 decimal places.) a Purchased $36,000 of new inventory on credit b. Paid accounts payable in the amount of $74,000. c. Recorded accrued salaries in the amount of $140,000. d Borrowed $290,000 from a local bank, to be repaid in 90 days. Debt-to-Assets Ratio
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