The following balances are from the records of Ashdash Company at December 31, Year 1:...

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Accounting

The following balances are from the records of Ashdash Company at December 31, Year 1:
Cash $2,000,000
Accounts receivables (net)5,000,000
Trading securities 600,000
Inventories 1,500,000
Property, plant, and equipment (net of depreciation)2,500,000
Goodwill 200,000
Accounts payable 2,000,000
Current maturities of noncurrent debt 100,000
Noncurrent debt 1,000,000
Common stock 600,000
Additional paid-in capital 8,000,000
Select from the option list provided the appropriate effect that the transaction had on each ratio or measurement. Assume each event is independent of the others. Each choice may be used once, more than once, or not at all.
Year 2 transaction
Quick ratio
Working capital
Debt-to-equity ratio
1. Accounts receivable were collected.
2. Inventories were purchased on credit.
3. Half the current maturities of noncurrent debt were retired on December 31, Year 2.
4. An unusual in nature event caused $250,000 worth of damage to the company's main building. Repairs were made by year-end and were paid for using a combination of cash and credit.
5. An executive exercised share options that had been granted as compensation and had vested in prior years. The market price was significantly higher at the date of exercise than at the date of grant.

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