Question: Answer with: 1) increase, 2) decrease, 3) does not affect Explain why Earnings are not distributed as dividends (i.e., are retained) equity An increase in

Answer with: 1) increase, 2) decrease, 3) does not affect

Explain why

  • Earnings are not distributed as dividends (i.e., are retained) equity
  • An increase in depreciation expense earnings and as cash flow
  • And increasing the long-term debt such as selling bonds the quick ratio
  • A decrease debt on the days sales outstanding
  • Selling inventory for a loss the quick ratio
  • Buying inventory with credit (accounts payable) total assets turnover
  • The sale of a fixed asset for more than its book value taxes owed
  • Collecting an account receivable return on assets
  • And increase in taxes the coverage ratio times interest earned
  • An increase in interest expense the firms operating profit margin
  • Operating at a loss the debt ratio
  • The return on equity if inventory is sold for a loss
  • Increased use of trade credit (accounts payable) to acquire your inventory days sales outstanding
  • Increased depreciation expense return on equity
  • If a firm repurchase shares, total asset turnover ___________
  • If I firm sells plant for less than its book value, total asset turnover and return on equity ___________
  • They use of the modified accelerated cost recovery system of depreciation instead of straight line depreciation initially ___________ the return on equity
  • If a firms current ratio increases the firm's liquidity position ___________
  • Collecting an accounts receivable ___________the debt ratio
  • Increasing the firm's cash ___________ fixed asset turnover

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