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You have learned how to analyze a transaction (event). Each transaction affects financial statement items...

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You have learned how to analyze a transaction (event). Each transaction affects financial statement items and thus financial ratios. Since financial ratios affect how a firm does its business, it is important to understand how an event affects ratios. Apple incurred an additional $2,100 in research and development expense paid for in cash. Assume that net income was $55,000, beginning total assets was $150,000, and ending total assets was $190,000 before the transaction. What would be the effect on the return on assets ratio? Journalize the transaction. In addition, calculate return on assets before the transaction and return on assets after the transaction. 1) Journal entry of the transaction - Enter an account name following debit (Dr.) and credit (Cr.), and enter dollar amounts in the table below. Dr. $55,00 CF $2,100 2) The financial ratio before the transaction = Explain your calculation in the table below. Numerator = Denominator 3) The financial ratio after the transaction - Explain your calculation in the table below. Numerator = Denominator =

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