Question:
Determining the Effects of Transactions on Debt-to-Assets, Asset Turnover, and Net Profit Margin Ratios
Complete the following table by indicating the sign of the effect (+ for increase, ? for decrease, NE for no effect, and CD for cannot determine) of each transaction. Consider each item independently.
a. Repaid $10 on a long-term note payable to a bank. (Interest was paid separately.)
b. Recorded collections of cash from customers who owed $32.