Molly Enterprises reported the following information for the past year of operations: For each transaction, indicate...

 

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Molly Enterprises reported the following information for the past year of operations: For each transaction, indicate whether the ratio will Increase, Decrease, or have No Effect. Operating-Cash-Flow-to- Transaction a. Recorded credit sales of $11,000 b. Collected $10,000 owed from customers c. Purchased $51,000 of equipment on long-term credit d. Purchased $66,000 of equipment for cash e. Paid $15,000 of wages with cash f. Recorded utility bill of $12,500 that has not been paid Free Cash Flow $300,000 1.2 times Operating-Cash-Flow-to- Current Liabilities Ratio Capital Expenditures Ratio 4.0 times = 4 Molly Enterprises reported the following information for the past year of operations: For each transaction, indicate whether the ratio will Increase, Decrease, or have No Effect. Operating-Cash-Flow-to- Transaction a. Recorded credit sales of $11,000 b. Collected $10,000 owed from customers c. Purchased $51,000 of equipment on long-term credit d. Purchased $66,000 of equipment for cash e. Paid $15,000 of wages with cash f. Recorded utility bill of $12,500 that has not been paid Free Cash Flow $300,000 1.2 times Operating-Cash-Flow-to- Current Liabilities Ratio Capital Expenditures Ratio 4.0 times = 4