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Indicate the effect of each item on a Company's working capital, current ratio, and acid-test ratio

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Question;Indicate the effect of each item on a Company's working capital, current ratio, and acid-test ratio. Use + for increase, ? for decrease, and (NE) for no effect.1. Credit sales for the year amounted to $312,000. The cost of goods sold was $202,800.2. Collected accounts receivable, $327,600.3. Purchased inventory on account, $218,400.4. Issued 650 shares of common stock for $23 per share.5. Wrote off $9,100 of uncollectible accounts using the allowance for bad debts.6. Declared and paid a cash dividend, $26,000.7. Sold marketable securities costing $33,800 for $40,300 in cash.8. Recorded insurance expense for the year, $15,600. The premium for the policy was paid in June 2013.9. Borrowed cash on a short-term bank loan, $13,000.10. Repaid principal of $52,000 and interest of $3,900 on a long-term bank loan

 

Paper#52054 | Written in 18-Jul-2015

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