Please type the solutions, no writing on paper because most of the time it's hard to tell what is what.

CP 136

In the lefthand column, a series of independent transactions is listed;

in the righthand column, a series of ratios is listed.

Required:

For each transaction

indicate whether the ratio will increase,

decrease, or remain unchanged. Assume all ratios are

greater than 1:1 before each transaction where applicable.

Effect on ratio

Transaction	Ratio	Inc.	Dec.	No change
Declared a cash dividend	Current ratio
Wroteoff an uncollectible account receivable	Accounts receivable collection period
Purchased inventory on account	Acidtest ratio
Issued 10year bonds to acquire capital assets	Return on total assets
Issued additional shares for cash	Debt to stockholders equity ratio
Declared a stock dividend on common shares	Earnings per share
Restricted part of retained earnings	Return on stockholders equity
Purchased supplies on account	Current ratio
Paid a shortterm creditor in full	Acidtest ratio
Paid an account payable, taking the cash discount	Number of days sales in inventory