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 Transaction Event Financial Ratio Effect a Split the common stock 2 for 1 Book value per share of common stock b Collected accounts receivable Number of days' sales in accounts receivable c Issued common stock 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 Accounts receivable turnover h Declared a cash dividend Dividend yield i Incurred operating expenses Margin j Sold equipment at a loss Earnings per share

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Question: 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)

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.

	Transaction/Event	Financial Ratio	Effect
a.	Split the common stock 2 for 1.	Book value per share of common stock
b.	Collected accounts receivable.	Number of days' sales in accounts receivable
c.	Issued common stock 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.	Accounts receivable turnover
h.	Declared a cash dividend.	Dividend yield
i.	Incurred operating expenses.	Margin
j.	Sold equipment at a loss.	Earnings per share

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