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1. What financial ratios are most affected by the action? 2. Through this activity, what would Bobby want to achieve?

1. What financial ratios are most affected by the action? 2. Through this activity, what would Bobby want to achieve?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Bobby is accounting manager of Home Depot, home building materials retailer whose year-end is December 31. He prepares checks for suppliers in December, makes the proper journal entries, and posts them to the appropriate accounts in that month. However, he holds on to the checks and mails them to the suppliers in January. Required: 1. What financial ratios are most affected by the action? 2. Through this activity, what would Bobby want to achieve?
Transcribed Image Text:Bobby is accounting manager of Home Depot, home building materials retailer whose year-end is December 31. He prepares checks for suppliers in December, makes the proper journal entries, and posts them to the appropriate accounts in that month. However, he holds on to the checks and mails them to the suppliers in January. Required: 1. What financial ratios are most affected by the action? 2. Through this activity, what would Bobby want to achieve?
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