Check my work Exercise 11-7 (Static) Effect of transactions on various financial ratios Indicate the effect that each transaction/event listed here will have on the financial ratio listed opposite It 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 Effect Transaction Event a Split the common stock 2 for 1 b. Collected accounts receivable c Issued common stock for cash d. Sold treasury stock e. Accrued interest on a not receivable Sold inventory on account 9 Wrote off an uncollectible account h Declared a cash dividend. Incurred operating expenses Sold equipment at a loss Financial Ratio Book value por share of common stock Number of days' sales in accounts receivable Total asset turnover Return on equity Current ratio Acid-test ratio Accounts receivable turnover Dividend yield Margin Earnings per share