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  3. riley manufacturing has a current ratio of 3:1 on

Riley Manufacturing has a current ratio of 3:1 on December 31, 2018. Indicate whether each...

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Accounting

Riley Manufacturing has a current ratio of 3:1 on December 31, 2018. Indicate whether each of the following transactions would increase (+), decrease (), or have no effect (NA) on Rileys current ratio and its working capital.

Current Ratio Working Capital
a. Paid cash for a trademark. + +
b. Wrote off an uncollectible account receivable. +
c. Sold equipment for cash. + NA
d. Sold merchandise at a profit (cash). +
e. Declared a cash dividend. +
f. Purchased inventory on account. + NA
g. Scrapped a fully depreciated machine (no gain or loss).
h. Issued a stock dividend. + NA
i. Purchased a machine with a long-term note. +
j. Paid a previously declared cash dividend. NA NA
k. Collected accounts receivable. NA NA
l. Invested in current marketable securities. NA NA

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