Five traditional financial indicators.
There are five traditional financial indicators identified below for Lipscomb Inc... Assume that each indicator is a ratio greater than one. Using a matrix with 5 columns for the indicators and 10 rows for the transactions, record the effect each of the following transactions of Lipscomb would have on each indicator. Respond with increase, decrease, no effect using the symbols: +, < >, 0 respectively.
Quick (Acid-test) Ratio
Accounts Receivable Turnover
Earnings per Share
Debt/Assets
Dividend Payout Rate
Transactions:
1.Purchased inventory on account
2.Sold inventory below its cost at a loss
3.Collected an account receivable from a customer
4.Issued bonds for cash from long-term creditors
5.Sold common stock for cash to new stockholders
6.Sold marketable securities at a loss
7.Declared a dividend on common stock
8.Sold land for cash at a gain
9.Received cash in advance from a customer (not yet earned)
10.Purchased common stock for the treasury