Indicate the effect of each item on the ratios given below in the following manner: if an item would cause an increase in the ratio, place a check in the + column; if a decrease, place a check in - column and if no change, check the 0 column. Each item is independent of the others.
Definitions:
Financing Activities
All transactions (other than interest payments) involving borrowing from creditors or repaying creditors as well as transactions with the company’s owners.
Cash Flow
The total amount of money being transferred into and out of a business, measuring its financial health.
Accounts Payable
Liabilities of a business representing money owed to creditors for goods and services received.
Accounts Receivable
Funds that customers owe to a business for products or services provided but have not yet been paid.
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