FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Pearce Enterprises reported the following information for the past year of operation:
Transaction |
$250,000 |
Operating-cash-flow-to-current-liabilities raition 1.0 times |
Operating-cash-flow-to-capital-expenditures ratio 3.0 times |
a) Recorded credit sales of $9,000 |
|||
b) Collected $4,000owed from customers | |||
c) Purchased $28,000 of equipment on long-term credit | |||
d) Purchased $16,000 of equipment for cash | |||
e) Paid $10,000 of wages with cash | |||
f) Recorded utility bill of $1,750 that has not been paid |
For each transaction, indicate whether the ratio will (I) Increase, (D) decrease, or (N) have no effect.
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