Indicate the effect that each transaction/event listed here will have on the financial ratio listed opposite it,

Question:

Indicate the effect that each transaction/event listed here will have on the financial ratio listed opposite it, and provide an explanation for your answer. Use + for increase, for decrease, and (NE) for no effect. Assume that current assets exceed current liabilities in all cases, both before and after the transaction/event.

Transaction/Event Financial Ratio
a. Split the 2 for 1. Book value per share of
b. Collected Number of days’ sales in Issued for cash. Total asset turnover
d. Sold treasury stock. Return on equity
e. Accrued interest on a note receivable. Current ratio
f. Sold inventory on account. Acid-test ratio
g. Wrote off an uncollectible account. turnover
h. Declared a cash yield
i. Incurred operating expenses. Margin
j. Sold equipment at a loss. Earnings per share

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...