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Problem 3: Husky Co's key financial ratios are calculated below for 2019. Determine how each of the transactions (1-5) would impact these ratios (i.e. calculate
Problem 3: Husky Co's key financial ratios are calculated below for 2019. Determine how each of the transactions (1-5) would impact these ratios (i.e. calculate the new ratios). ROA 700.000 1000000 0.7 ATO 1.200.000 1000000 12 Gross Profit 900.000 1.200.000 0.75 Total Assets 1/1/19 Total Assets 12/31/19 900,000 1,100,000 1. The company obtains a 5-year, 100,000 note on 12/31/18. Calculate the effect on ROA and ATO. 2. The value of the company's land increases by 100,000 in June 2019. Calculate the effect on ROA and Gross Profit. 3. In December 2019, the company sells equipment with a net book value of 10,000 for 12,000. Calculate the effect on Gross Profit and ATO. 4. In June 2019, the company impairs goodwill by 15,000. Calculate the effect on ROA and ATO. 5. In 2019, the company pays its employees a bonus totaling 200,000. Calculate the effect on ROA and Gross Profit
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