Ratio Return on common shareholders' equity Current ratio Operating margin

Ratio definition $($Net income $-$ preferred dividends$)-$: common equity Current assets $-$: current liabilities Operating profit $-$: revenue

Year$-$end ratio without the transaction $8\%1\mathrm{.}37\%$

Conversion of a bond at year$-$end, which would otherwise mature in three years, into common shares. The bond paid an effective interest rate of $6\%.$

Sale of $5,000$ common shares for cash

Sale of $$10,000$ of inventory for cash. Cost of goods sold was $$6,000.$