ease PROBLEM 17-15 Effects of Transactions on Various Financial Ratios [LO2, LO3. L0 your choice. In all cases, assume that the current assets exceed current liabilities both before and the effect in...

Extracted text: ease PROBLEM 17-15 Effects of Transactions on Various Financial Ratios [LO2, LO3. L0 your choice. In all cases, assume that the current assets exceed current liabilities both before and the effect in terms of increase, decrease, or no effect on the ratio involved, and give the reason for Indicate the effect that each transaction or event would have on the ratio listed opposite to it. State In the right-hand column below, certain financial ratios are listed. To the left of each ratio is a business transaction or event relating to the operating activities of Graham Company. Business Transaction or Event Ratio Debt-to-equity ratio Earnings per share Acid-test ratio 1. Inventory was sold for cash at a profit. 2. Land was purchased for cash. 3. Inventory was sold on account at cost. 4. Some accounts payable were paid off. 5. A customer paid an overdue bill. 6. A cash dividend was declared, but not yet paid. 7. A previously declared cash dividend was paid. 8. The company's common stock price increased. 9. The company's common stock price increased and earnings per share remained unchanged. 10. Property was sold for a profit. 11. Obsolete inventory was written off as a loss. 12. Bonds were sold with an interest rate less than the company's Working capital Average collection period Current ratio Current ratio Book value per share Dividend yield ratio Return on total assets Inventory turnover ratio Return on common stockholders' equity Dividend payout ratio return on assets. 13. The company's common stock price decreased and the dividend paid per share remained the same. 14. The company's net income decreased, but long-term debt remained unchanged. 15. An uncollectible account was written off against the Allowance for Bad Debts. 16. Inventory was purchased on credit. 17. The company's common stock price increased and earnings · per share remained unchanged. 18. The company paid off some accounts payable. Times interest earned Current ratio Acid-test ratio Price-earnings ratio Debt-to-equity ratio Required: after the event or transaction. Use the following format for your answers: Effect on Ratio Reason for Increase, Decrease, or No Effecr 1. 2. Etc.