Question 5: In the right-hand column below, certain financial ratios are listed. To the left of each ratio is a business transaction or event relating to the operating activities of Linsay & Linsay Company, 1. Inventory was sold for cash at a profit. Debt-to-equity ratio 2. Land was purchased for cash. Earnings per share 3. Inventory was sold on account at cost. Acid-test ratio 4. Some accounts payable were paid off. Working capital 5. A customer paid an overdue bill. Average collection period 6. A cash dividend was declared, but not yet paid. Current ratio 7. A previously declared cash dividend was paid. Current ratio 8. The company's common share price has increased to $50 from Book value per share $45. 9. Dividends per share have remained the same but the market Dividend yield ratio price per share has increased to $50 from $45. 10. Property was sold for a profit. Return on total assets 11. Obsolete inventory was written off as a loss. Inventory turnover ratio 12. Bonds were sold with an interest rate less than the company's Return on common return shareholders' equity 13. The market price per share of the company's common share Dividend payout ratio has decreased from $22 to $20. Times interest earned 14. The company's net income has decreased since last year but long-term debt remained unchanged. 15. An uncollectable account was written off against the Current ratio Allowance for Bad Debts. Acid-test ratio 16. Inventory was purchased on credit. Page 3 / 4 Q + Price-earnings ratio 17. The company's common share price has increased by $3 per share while earnings per share remained unchanged. 18. The company paid off some accounts payable. Debt-to-equity ratio Required: muld hun on the ratio listed opposite to it. State the effect in terms Question 5: In the right-hand column below, certain financial ratios are listed. To the left of each ratio is a business transaction or event relating to the operating activities of Linsay & Linsay Company, 1. Inventory was sold for cash at a profit. Debt-to-equity ratio 2. Land was purchased for cash. Earnings per share 3. Inventory was sold on account at cost. Acid-test ratio 4. Some accounts payable were paid off. Working capital 5. A customer paid an overdue bill. Average collection period 6. A cash dividend was declared, but not yet paid. Current ratio 7. A previously declared cash dividend was paid. Current ratio 8. The company's common share price has increased to $50 from Book value per share $45. 9. Dividends per share have remained the same but the market Dividend yield ratio price per share has increased to $50 from $45. 10. Property was sold for a profit. Return on total assets 11. Obsolete inventory was written off as a loss. Inventory turnover ratio 12. Bonds were sold with an interest rate less than the company's Return on common return shareholders' equity 13. The market price per share of the company's common share Dividend payout ratio has decreased from $22 to $20. Times interest earned 14. The company's net income has decreased since last year but long-term debt remained unchanged. 15. An uncollectable account was written off against the Current ratio Allowance for Bad Debts. Acid-test ratio 16. Inventory was purchased on credit. Page 3 / 4 Q + Price-earnings ratio 17. The company's common share price has increased by $3 per share while earnings per share remained unchanged. 18. The company paid off some accounts payable. Debt-to-equity ratio Required: muld hun on the ratio listed opposite to it. State the effect in terms