Shiny 1. Kar Company had the following transactions. For each transaction, show the effect on the accounting equation by putting the amount and direction (plus, minus, or NC for no change) in each box of the table below.

	Assets	Liabilities	Owners Equity
a. Shiny Kar withdrew $500 cash for food.
b. Shiny Kar Company sold 2 cars for a total of $55,000 on account.
c. The cost of the cars sold in (b) above was $40,000.
d. Shiny Kar received $35,000 payment for a car previously sold on account.
e. Shiny Kar paid $450 for advertising.
f. Shiny Kar purchased $150 of cleaning supplies on account.

2. 2. A summary of cash flows for Alex Design Services for the year ended December 31, 2012, is shown below.

Cash receipts:
Cash received from customers	$83,990
Cash received from additional investment by owner	25,000

Cash payments:
Cash paid for expenses	$27,000
Cash paid for land	47,000
Cash paid for supplies	410
Drawing	5,000
The cash balance as of January 1, 2012	$40,600

Prepare a statement of cash flows for Alex Design Services for the year ended December 31, 2012.

3. Given the following data:

Dec. 31,2014 Dec. 31,2013

Total liabilities $128,250 $120,000

Total owners equity 95,000 80,000

a. Compute the ratio of liabilities to owners equity for each year.

b. Has the creditors risk increased or decreased from December 31, 2013, to December 31, 2014?