Question 9 Question 1 - Part C (10 marks) Not yet answered Marked out of 10.00 Flag question Zoe Ltd is a firm of chartered accountants. The following independent transactions have taken place at Zoe Ltd in the past month of June. 1. In total $20,000 was borrowed from the bank in the form of a loan on the last day of June. This is due to be paid back in one lump sum in three years' time. Interest charges will commence on 1st July. 2. A dividend was declared during the month of June for $50,000. This will be paid to the shareholders in August. 3. The company received $30,000 in cash which was a payment received from a client for an outstanding accounts receivable balance. 4. A company receives a June electricity bill for electricity used during the month of June, which will be paid in July. Required For each of the above transactions or events, indicate the directional effect (increase, decrease, no change) the Return on Equity (assuming it is currently 15%), on the Current Ratio (assuming it is currently less 1) and the Total Asset Turnover (assuming it is currently 9 times) during the month of June. Note that you must write either 'increase', 'decrease', or 'no change'. PLEASE NOTE THAT THERE IS A LIST OF RATIO FORMULAE PROVIDED AT THE END OF THE EXAM PAPER. Provide your answers in the table below (except when there is an X in the box.) Font family Font size Format H Transaction Return on Equity Path: table 2 3 X (no answer required) 4 Current Ratio Total Asset Turnover X (no answer required) Words:17