Reference no: EM13867820
BSO, Inc., has assets of $ 600,000 and liabilities of $ 450,000, resulting in a debt-to-assets ratio of 0.75.
For each of the following transactions, determine whether the debt-to-assets ratio will increase, decrease, or remain the same. Each item is independent.
a. Purchased $ 20,000 of new inventory on credit.
b. Paid accounts payable in the amount of $ 50,000.
c. Recorded accrued salaries in the amount of $ 100,000.
d. Borrowed $ 250,000 from a local bank, to be repaid in 90 days.
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Determine whether the debt to assets ratio will increase
: BSO, Inc., has assets of $ 600,000 and liabilities of $ 450,000, resulting in a debt-to-assets ratio of 0.75. For each of the following transactions, determine whether the debt-to-assets ratio will increase, decrease, or remain the same. Each item is..
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