haller unit prices. 3. Corporation declared a cash dividend. 4. A bad account was written off against the allowance account. 5. Issued additional shares of common stock and issued proceeds to retire long- term debt. 6. Paid stock dividends on common stock in common stock. 7. Conversion of bonds payable into common stock (ignore income taxes) 8. Created an appropriation of retained earnings 9. During period of rising prices, company changed from FIFO to LIFO method of inventory pricing 10.Paid previously declared cash dividend. percentage 3. Current ratio 4. Current ratio 5. Debt ratio 6. Earnings per share 7. Interest coverage ratio 8. ROR on stockhold- er's equity 9. Inventory turnover 10. Debt ratio REQUIRED: 1. What effect would each transaction or event have on the ratio at the right (increase, decrease, remain unchanged)?
haller unit prices. 3. Corporation declared a cash dividend. 4. A bad account was written off against the allowance account. 5. Issued additional shares of common stock and issued proceeds to retire long- term debt. 6. Paid stock dividends on common stock in common stock. 7. Conversion of bonds payable into common stock (ignore income taxes) 8. Created an appropriation of retained earnings 9. During period of rising prices, company changed from FIFO to LIFO method of inventory pricing 10.Paid previously declared cash dividend. percentage 3. Current ratio 4. Current ratio 5. Debt ratio 6. Earnings per share 7. Interest coverage ratio 8. ROR on stockhold- er's equity 9. Inventory turnover 10. Debt ratio REQUIRED: 1. What effect would each transaction or event have on the ratio at the right (increase, decrease, remain unchanged)?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Transactions
1. Purchased inventory on account.
2. A larger physical volume of goods was sold
at smaller unit prices.
3. Corporation declared a cash dividend.
4. A bad account was written off against
the allowance account.
5. Issued additional shares of common stock
and issued proceeds to retire long-
term debt.
6. Paid stock dividends on common stock
in common stock.
7. Conversion of bonds payable into
common stock (ignore income taxes)
8. Created an appropriation of
retained earnings
9. During period of rising prices, company
changed from FIFO to LIFO method of
inventory pricing
10.Paid previously declared cash dividend.
for all costs.
Ratio
1. Quick ratio
2. Gross profit
percentage
3. Current ratio
4. Current ratio
5. Debt ratio
6. Earnings per
share
7. Interest coverage
ratio
8. ROR on stockhold-
er's equity
9. Inventory turnover
10. Debt ratio
REQUIRED:
1. What effect would each transaction or event have on the ratio at the right
(increase, decrease, remain unchanged)?
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