need #5

Question 5 (20 points) (continued from the previous problem) Suppose that the factoring arrangement was with recourse instead ow without recourse, and the recourse liability was $25,000. Which of the following statements are true? (select all that apply - i.e. only one or as many as all of them) The 2020 net income would be lower On 4/30, Cash would be debited for a smaller amount On 4/30, total liabilities would change by the same amount The effect of the 4/30 journal entries on the current ratio would be different On 4/30, a loss account would be debited for a larger amount On 4/30/20, Parkers Company transferred $200,000 of accounts receivable to a local factor. The transfer was made without recourse. The factor remits 85% of the factored amount to Parkers and retains 15%. When the factor collects the receivables, it will remit to Parkers the retained amount. The factoring fee is 5%. Assuming that the sale criteria are met, which of the following statements are true (select all that apply - i.e. only one or as many as all of them) The journal entries recorded on 4/30 affect the debt-to-equity ratio for the year 2020 On 4/30, a loss account is debited for $40,000 On 4/30, Cash is debited for $190,000 The journal entries recorded on 4/30 decrease both the current and the quick ratio On 4/30, Cash is debited for $170,000 On 4/30, total assets increase by $190,000 On 4/30, a liability account is credited