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I need help on this problem. Pearce Enterprises reported the following information for the past year of operation:

I need help on this problem.

 

Pearce Enterprises reported the following information for the past year of operation:

Transaction

Free Cash Flow

$250,000

Operating-cash-flow-to-current-liabilities raition

1.0 times

Operating-cash-flow-to-capital-expenditures ratio

3.0 times

a) Recorded credit sales of $9,000

     
b) Collected $4,000owed from customers      
c) Purchased $28,000 of equipment on long-term credit      
d) Purchased $16,000 of equipment for cash      
e) Paid $10,000 of wages with cash      
f) Recorded utility bill of $1,750 that has not been paid      

For each transaction, indicate whether the ratio will (I) Increase, (D) decrease, or (N) have no effect.

 

Sep 16 2020 Read more Less More

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