Question: please answer whether the follwing metrics will increase, decrease, or have no change: Current Ratio, Inventory Turnover Ratio, Fixed Asset Turnover Ratio, and Debt to
Use the following information for this question and for questions 15 and 16. You are a financial analyst covering TechHome Inc. (THI), a company that makes smart furniture. THI engaged in a series of transactions in the current fiscal year and you are analyzing how the transactions affect THI's financial statement accounts and key performance ratios. The selected transactions are as follows: A. THI sold finished products from its inventory for $1,400 cash. Cost of goods = $950. B. THI acquired machinery for $1,500 in exchange for a note payable of $850 payable in 6 months and the balance was paid in cash. C. THI recorded depreciation of $200 on its Property, Plant, and Equipment (PP&E). Consider each transaction (A-C) independently and evaluate the effect (if any) on the stated key financial statement ratios based solely on the effect of the specified transaction. (This Question 14) - For Transaction A, the effect on the Current Ratio and the Inventory Turnover ratio is No effect on either ratio Decrease/Increase Increase/Increase Increase/Decrease Decrease/Decrease
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