Monsanto Company, a leading global chemical manufacturer, entered into the following transactions during 2013.
1. Purchased inventory on account.
2. Purchased plant machinery by issuing long-term debt.
3. Made a principal payment on long-term debt.
4. Paid wages.
5. Sold inventory on account for 20 percent over cost.
6. Issued stock for cash.
The 2012 balance sheet of Monsanto is as follows (dollars in millions).

Fill in a chart like the following one by indicating whether each transaction would increase (+), decrease (–), or have no effect (NE) on the quick ratio, current ratio, and debt/equity ratio. Treat each transaction independently.
Transaction Quick Ratio Current Ratio Debt/Equity Ratio

  • CreatedAugust 19, 2014
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