Indicate the effects of the transaction listed below on each of the following total current assets, working capital (CA-CL), and current ratio. Indicate increase with “+,” indicate decrease with “—“ and indicate no effect cannot be determined with “0.” Assume and initial current ration of greater than 1.0. Total Current Working Current Assets Capital Ratio Food is sold for cash. _____ ______ ______ Equipment is sold less Than its book value. _____ ______ ______ A cash dividend is declared. _____ ______ ______ Treasury stock is purchased. _____ ______ ______ A fully depreciated fixed asset is retired. _____ ______ ______ Equipment is purchased with long-term notes. _____ ______ ______ Utility expenses are paid (they were not previously accrued). _____ ______ ______ A cash dividend is paid. _____ ______ ____
Indicate the effects of the transaction listed below on each of the following total current assets, working capital (CA-CL), and current ratio. Indicate increase with “+,” indicate decrease with “—“ and indicate no effect cannot be determined with “0.” Assume and initial current ration of greater than 1.0. Total Current Working Current Assets Capital Ratio Food is sold for cash. _____ ______ ______ Equipment is sold less Than its book value. _____ ______ ______ A cash dividend is declared. _____ ______ ______ Treasury stock is purchased. _____ ______ ______ A fully depreciated fixed asset is retired. _____ ______ ______ Equipment is purchased with long-term notes. _____ ______ ______ Utility expenses are paid (they were not previously accrued). _____ ______ ______ A cash dividend is paid. _____ ______ ____
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
- Indicate the effects of the transaction listed below on each of the following total current assets, working capital (CA-CL), and current ratio. Indicate increase with “+,” indicate decrease with “—“ and indicate no effect cannot be determined with “0.” Assume and initial current ration of greater than 1.0.
Total
Current Working Current
Assets Capital Ratio
- Food is sold for cash. _____ ______ ______
- Equipment is sold less
Than its book value. _____ ______ ______ - A cash dividend is declared. _____ ______ ______
Treasury stock is purchased. _____ ______ ______- A fully
depreciated fixed asset
is retired. _____ ______ ______ - Equipment is purchased with
long-term notes. _____ ______ ______ - Utility expenses are paid (they
were not previously accrued). _____ ______ ______
A cash dividend is paid. _____ ______ ______
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