Question 5

M10-14 Analyzing the Impact of Transactions on the Debt-to-Assets Ratio [LO 10-5) BSO, Inc., has assets of $830,000 and liabilities of $622,500 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.) Debt-to-Assets Ratio a. Purchased 566,000 of new inventory on credit b. Pald accounts payable in the amount of $119,000 Recorded accrued salaries in the amount of $215,000 d. Borrowed $365,000 from a local bank, to be repaid in 90 days