Riley Manufacturing has a current ratio of 3:1 on December 31, 2018. Indicate whether each...
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Accounting
Riley Manufacturing has a current ratio of 3:1 on December 31, 2018. Indicate whether each of the following transactions would increase (+), decrease (), or have no effect (NA) on Rileys current ratio and its working capital.
Current Ratio
Working Capital
a.
Paid cash for a trademark.
+
+
b.
Wrote off an uncollectible account receivable.
+
c.
Sold equipment for cash.
+
NA
d.
Sold merchandise at a profit (cash).
+
e.
Declared a cash dividend.
+
f.
Purchased inventory on account.
+
NA
g.
Scrapped a fully depreciated machine (no gain or loss).
h.
Issued a stock dividend.
+
NA
i.
Purchased a machine with a long-term note.
+
j.
Paid a previously declared cash dividend.
NA
NA
k.
Collected accounts receivable.
NA
NA
l.
Invested in current marketable securities.
NA
NA
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