G, value: 8.00 points BSO, Inc. has assets of $720,000 and liabilities of $540,0

Question

G, value: 8.00 points BSO, Inc. has assets of $720,000 and liabilities of $540,000 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 Ratio a. Purchased $44,000 of new inventory on credit. b. Paid accounts payable in the amount of $86,000. c. Recorded accrued salaries in the amount of $160,000. d. Borrowed $310,000 from a local bank, to be repaid in 90 days.

Explanation / Answer

a.Purchased $20,000 of new inventory on credit. Remain Same 0.75 b Paid accounts payable in the amount of $86,000. Remain Same 0.75 c.Recorded accrued salaries in the amount of $160,000. Increase 0.97 d Borrowed $310000 from a local bank, to be repaid in 90 days Remain Same 0.75 c (540000+160000)/720000 0.97

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