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Impact of transactions on ratios Analyse the effect of each of the following transactions on...

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Accounting

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Impact of transactions on ratios Analyse the effect of each of the following transactions on the current ratio, quick ratio, debt-to-equity ratio and earnings per share. Assume that the current ratio, quick ratio and debt-to-equity ratio are each greater than 1, and that earnings per share is positive. Determine if the ratio increases, decreases or is unchanged. Consider each transaction independently of all the other transactions. 1 Repaid short-term loans payable of $51 000. 2 Purchased inventory of $48 000 on cash. 3. Made repayments of $78 000 on the long-term loan 4 Declared, but did not pay, a $31 000 cash dividend on shares. 5 Borrowed an additional $56 000 on the long-term loan 6 Sold short-term investments recorded in the balance sheet at $30 000 for $28 000. 7 Issued 140 000 shares at the beginning of the financial period for cash of $168 000. 8 Received $6000 owing in cash from a customer

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