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Required ndicate the effect of each of the following transactions on (1) the current ratio, (2) working capital, (3) stockholders equity. (4) book value per share of common stock, and (5) retained earnings. Assume that the current ratio is greater than 1:1. (Indicate the effect of each transactions by selecting for increase, - for decrease, and NC for no change.) a. Collected account receivable. b. Wrote off account receivable. c. Converted a short-term note payable to a long-term note payable. d. Purchased inventory on account. e. Declared cash dividend. f. Sold merchandise on account at a profit g. Issued stock dividend h. Paid account payable. i. Sold building at a loss. Current Working Stockholders Book Retained Equity Ratio Capital Value Earnings C.

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please find below the solution... let me know if you need any clarification...

Current ratio Working capital Shareholder's equity Book value Retained earning
a NC NC NC NC NC
b NC NC NC NC NC
c + + NC NC NC
d - NC NC NC NC
e - - - - -
f + + + + +
g NC NC NC - -
h + NC NC NC NC
i + + - - -
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