Indicate by letter whther the action listed will

Reference no: EM13578929

Indicate by letter whther the action listed will immediatelyh Increase (I), Decrease (D), or have noe effect (N) on the ratios shown in the table. Assume each ratio is less than 1.0 before the action was taken.

Action Current Ratio Acid Test Ratio Debt to Equity Ratio

1. Issuance of Long Term Bonds

2. Issuane of Short Term Notes

3. Payment of Accounts Payable

4. Purchase of Inventory on Account

5. Purchase of Inventory for Cash

6. Purchase of Equipment with 4-year Note

7. Retirement of Bonds

8. Sale of Common Stock

9. Write off of Obsolete Inventory

10. Purchase of Short Term Investment for Cash

11. Decision to Refinance on a long term basis some currently maturity of debt

Reference no: EM13578929

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