Question: Indicate the effects of the following transactions on operating margin, invested capital turnover, and debt ratio. Use + to indicate an increase, to indicate a
Indicate the effects of the following transactions on operating margin, invested capital turnover, and debt ratio. Use + to indicate an increase, to indicate a decrease, and 0 to indicate no effect.
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Invested Operating margin capital turnover Debt ratio 1. Shares are issued for cash 2. Goods from inventory are sold for cash at a profit 3. A fixed asset is sold for cash at its book value 4. A fixed asset is sold for more than its book value S. A dividend is declared and paid 6. Cash is obtained through a bank loan 7. Accounts receivable are collected 8. Minority interest in a firm is acquired for cash 9. A fixed asset is depreciated 10. Obsolete inventory is written off 11. Merchandise is purchased on account 12. Shares are repurchased
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