This paper concentrates on the primary theme of 5 INDIVIDUAL TRANSACTIONS OFTEN HAVE A SIGNIFICANT IMPACT ON RATIOS. THIS PROBLEM WILL CONSIDER… in which you have to explain and evaluate its intricate aspects in detail. In addition to this, this paper has been reviewed and purchased by most of the students hence; it has been rated 4.8 points on the scale of 5 points. Besides, the price of this paper starts from £ 40. For more details and full access to the paper, please refer to the site.
5 Individual transactions often have a significant impact on ratios. This problem will consider the direction of such an impact.
|Ratio Transaction||Times Interest Earned||Debt Ratio||Debt/Equity Ratio||Debt to Tangible Net Worth|
|a. Purchase of buildings financed by mortgage.||23.1||1.08||0.7||1.1|
|b. Purchase of inventory on short-term loan at 1% over prime rate.||32.5||_____||_____||_____|
|c. Declaration and payment of cash dividend.||0||_____||_____||_____|
|d. Declaration and payment of stock dividend.||0||0||0||0|
|e. Firm increases profits by cutting cost of sales.||_____||_____||_____||_____|
|f. Appropriation of retained earnings.||0||0||0||0|
|g. Sale of common stock.||_____||_____||_____||_____|
|h. Repayment of long-term bank loan.||0||_____||_____||_____|
|i. Conversion of bonds to common stock outstanding.||_____||_____||_____||_____|
|j. Sale of inventory at greater than cost.||_____||_____||_____||_____|