need the missing information BSO, Inc has assets of S700 000 and iabilities of $

Question

need the missing information

BSO, Inc has assets of S700 000 and iabilities of $525,000 resulting in a debt to-assets ratio of 0. 75. For each of the following transactions, determine whether the debt-to-assets ratio will increase, decrease, or remain the same, and enter the value of the new debt-to-assets ratio. (Round your answers to 2 decimal places-) Debt-to Assets a. Purchased $40 000 of new inventory on credit. b. Paid accounts payable in the amount of $80,000 Increase Decrease Increase Increase 076 Recorded accrued salaries in the amount of $150,000 d. Borrowed S300,000 from a local bank, to be repaid in 90 days.

Explanation / Answer

Assets 525000 Debt/ Assets 0.75 Debts 525000*.75 393750 a Purchased $ 40000 of new inventory on credit Increase 0.76 ( 393750+40000/525000+40000) b Paid Accounts Payable in the amount fo $ 80000 Decrease 0.705 ( 393750-80000)/(525000-80000) c Recorded Accrual Salaries in the amount of $ 150000 Increase 0.8 ( 393750+150000)/(525000+150000) d Borrowed 500000 Increase 0.87 ( 393750+500000)/(525000+500000)

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