After completing her first year of operations, Penny Cassidy used a number of ratios to evaluate the performance of Penny’s Pool Service & Supply, Inc. She was particularly interested in the effects of the following transactions from the last quartera. Paid herself a dividend of $ 10,000 as the sole stockholder.

b. Recorded advance payments from customers of $2,000.

c. Paid the current month’s rent in cask $500.

d. Purchased a new truck for $14,000 and signed a note payable for the whole amount. The truck was not placed in service until January 2015.

e. Recorded depreciation expense on office equipment of $600.

f Accrued interest expense on the note payable to the bank was $400.

Required:1. Complete the following table, indicating the effects of each transaction on each financial statement category listed. Indicate the amount and use + for increase, — for decrease, and NE for no effect.

2. Complete the following table, indicating the sign of the effects of each transaction on the financial ratio listed. Use + for increase. — for decrease, and NE for noeffect.

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Total Asset Return on Assets Transaction Net Profit Margin Turnover a. etc