Question:
The president of Ruskin Inc. (Ruskin) wants to know the effect a number of transactions and economic events will have on several financial measures for the companys fiscal year ended April 30, 2017. Complete the following table by indicating whether the listed transactions or economic events would increase, decrease, or have no effect on the financial measures listed. Explain your reasoning and state any assumptions that you make. Consider each itemindependently.
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Debt-to Interest Return equity Current Cash from ratio on Ratio/amount before taking the transaction/economic event into account operations assets $3,500,000 8.5% ratio ratio 0.75:1 0.85 5.2 a. Ruskin signed a contract in January 2017 to purchase raw materials beginning in fiscal 2018 at an agreed-to price b. Ruskin provided services to a customer that had been paid for in the previous fiscal year c. Ruskin made its annual contribution to its defined-contribution pension plan in April 2017 d. In March 2017, Ruskin repaid a bond that was classified as the current portion of long-term debt. e. In November 2016, Ruskin paid $1,000,000 to settle a lawsuit that was launched three years ago. The amount owed had been accrued as a current liability earlier