Determine the effect on the current ratio, the quick ratio, net working capital (current assets less current
Question:
Use I for increase, D for decrease, and N for nochange.
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Current Quick Net Working Debt io Capital Ratio Ratio Rat (a) Borrows $10,000 from bank on short-term note (b) Writes off a $5,000 customer account (c) Issues $25,000 in new common stock for cash (d) Purchases for cash $7,000 of new equipment (e) $5,000 inventory is destroyed by fire (f) Invests $3,000 in short-term marketable securities (g) Issues $10,000 long-term bonds (h) Sells equipment with book value of $6,000 for $7,000 (i) Issues $10,000 stock in exchange for land (j) Purchases $3,000 inventory for cash (k) Purchases $5,000 inventory on credit (1) Pays $2,000 to supplier to reduce account payable
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Current Quick Net Wk Capital Debt a D N N I b N N N N ...View the full answer
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Related Book For
Understanding financial statements
ISBN: 978-0136086246
9th Edition
Authors: Lyn M. Fraser, Aileen Ormiston
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