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Purchase building by issuing long term debt ROA Current Ratio Quick Ratio Purchase Inventory on Account ROA Current Ratio Quick Ratio Pay off (reimburse) Short

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  1. Purchase building by issuing long term debt
    1. ROA
    2. Current Ratio
    3. Quick Ratio
  2. Purchase Inventory on Account
    1. ROA
    2. Current Ratio
    3. Quick Ratio
  3. Pay off (reimburse) Short term loans with cash
    1. ROA
    2. Current Ratio
    3. Quick Ratio
  4. Return defective inventory to suppliers (no cash back is received, instead amounts owed to suppliers decrease)
    1. ROA
    2. Current Ratio
    3. Quick Ratio
  5. Issuance of common stock for cash
    1. ROA
    2. Current Ratio
    3. Quick Ratio
  6. Collecting cash from credit customers
    1. ROA
    2. Current Ratio
    3. Quick Ratio
  7. Accrue (record) salary expense without paying the employees their salary yet
    1. ROA
    2. Current Ratio
    3. Quick Ratio
  8. Declare and pay cash dividends
    1. ROA
    2. Current Ratio
    3. Quick Ratio

For Questions 1 through 8, select I for Increase, D for Decrease, or NE for No Effect. ROA= Average Tous Current Ratio = Total Current Lisbiten Total Current Awts Quick Ratio - Cash+ Marketable Seeruitles - Accounts Receivable lutem Total Current Labditie Assume Current Ratio and Quick Ratio are both above 10 and ROA is below 10 prior to any transaction All transactions are treated independently

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