Business, 10.03.2020 22:18, Queenempress9380

International Imports Inc. purchases a new piece of equipment for $50,000, using a cash down payment of $5,000 and a note payable for the outstanding balance.

1) Identify which of the following financial accounts are affected by the transaction?
1. Cost of goods sold
2. Gross plant and equipment
3. Retained earnings
4. Cash
5. Notes payable
6. Accounts payable

2) For the following Financial Ratios identify the effect of transaction i. e increase or no change or decrease.
1. Quick ratio
2. Debt ratio
3. Average collection period
4. Fixed assets turnover
5. Return on common equity
6. Times interest earned

Answers: 2

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International Imports Inc. purchases a new piece of equipment for $50,000, using a cash down payment...