M10-14 (Algo) Analyzing the Impact of Transactions on the Debt-to-Assets Ratio [LO 10-5]

BSO, Incorporated, has assets of $700,000 and liabilities of $525,000, 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.)

	decrease or increase or same	debt to assest ratio
a- purchased $40,000 of new inventory on credit
b- paid accounts payable in the amount of $80,000
c- record accused salaries in the amount of $150,000
d- borrowed $300,000 from a local bank, to be repaid in 90 days.