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Please read each transaction carefully!!! There are five traditional financial indicators identified below for Rainy Inc. Assume that each indicator other than gross margin is
Please read each transaction carefully!!!
There are five traditional financial indicators identified below for Rainy Inc. Assume that each indicator other than gross margin is a ratio greater than one. Complete the matrix with 5 columns for the indicators and 5 rows for the transactions, record the effect each of the following transactions of Rainy would have on each indicator. Respondwith increase, decrease, no effect using the symbols: + 0. Quick (Acid-test) Ratio Inventory Turnover Net Margin Interest Coverage TIE Earnings Per Share EPS Transactions: 1. Sold inventory at a loss on account. 2. Sold treasury common stock. 3. Issued bonds for cash to new creditors 4. Sold marketable securities at a gain 5. Received cash in advance from a customer (not yet earned) Quick INV TO Net Margin TIE EPS 1. 2. 3. 4. 5Step by Step Solution
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