Question: Decisions made by management affect the ratios that analysts use to evaluate performance . Show the impact on current ratio, the quick ratio , and
Decisions made by management affect the ratios that analysts use to evaluate performance . Show the impact on current ratio, the quick ratio , and the debt- to-equity ratio. Assume that the existing ratios are all 2 :1. You can use some fake numbers to check your thoughts on the outcome . For example Assume the current ratio is 200 to 100 and you buy a short- term investment for 50... write out the journal entry and see what happens
A Issuance of long term bonds
B issuance of short term notes
C Payment of account payable
D Purchase of equipment with a 4 year note
E payment of salaries
F Purchase of inventory on account
G Purchase of inventory with cash
H Issuance of common stock for cash
I Issuance of common stock for PPE
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