Indicate the effects c assets, working capi decrease with O a an initial current rati 1. Food is sold for 2. Equipment is sc its net book valu 3. Beverages are se 4. A cash dividenc 5. Accrued payrol! 6. Treasury stock i 7. A fully deprecia is retired.
Indicate the effects c assets, working capi decrease with O a an initial current rati 1. Food is sold for 2. Equipment is sc its net book valu 3. Beverages are se 4. A cash dividenc 5. Accrued payrol! 6. Treasury stock i 7. A fully deprecia is retired.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Helpp plz
![dssets, working capital (CA - CL). and current ratio. Indicate increase with "+," indicate
decrease with
teicate the effects of the transactions listed below on each of the following: total current
Problem 1
total revenue to be tran
and equipment replacer
lodging property has 20
Its room revenue is 70
of its total revenue.
an initial current ratio of greater than 1.0.
¨and indicate no effect or effect cannot be determined with "0." Assume
Total
Current
Working
Сapital
Current
1. Food is sold for cash.
Assets
Ratio
Required:
2. Equipment is sold at less than
its net book value.
1. Determine the
2. Determine th
3. Beverages are sold on account.
3. Determine
4. A cash dividend is declared.
5. Accrued payroll is paid.
The Brooklyn
credit and co
6. Treasury stock is purchased.
7. A fully depreciated fixed asset
is retired.
year has 365](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb7d1a56a-8962-42b1-9c78-3235223164b9%2Fbc6d31f4-99fb-46a2-8c29-276f72f5160b%2Fzetov6f.jpeg&w=3840&q=75)
Transcribed Image Text:dssets, working capital (CA - CL). and current ratio. Indicate increase with "+," indicate
decrease with
teicate the effects of the transactions listed below on each of the following: total current
Problem 1
total revenue to be tran
and equipment replacer
lodging property has 20
Its room revenue is 70
of its total revenue.
an initial current ratio of greater than 1.0.
¨and indicate no effect or effect cannot be determined with "0." Assume
Total
Current
Working
Сapital
Current
1. Food is sold for cash.
Assets
Ratio
Required:
2. Equipment is sold at less than
its net book value.
1. Determine the
2. Determine th
3. Beverages are sold on account.
3. Determine
4. A cash dividend is declared.
5. Accrued payroll is paid.
The Brooklyn
credit and co
6. Treasury stock is purchased.
7. A fully depreciated fixed asset
is retired.
year has 365
![8. Equipment is purchased with
long-term notes.
Ratio Analysis 281
9. Utility expenses are paid (they
were not previously accrued).
10. A cash dividend is paid.
Problem 2](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb7d1a56a-8962-42b1-9c78-3235223164b9%2Fbc6d31f4-99fb-46a2-8c29-276f72f5160b%2Fvujjf02.jpeg&w=3840&q=75)
Transcribed Image Text:8. Equipment is purchased with
long-term notes.
Ratio Analysis 281
9. Utility expenses are paid (they
were not previously accrued).
10. A cash dividend is paid.
Problem 2
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