Each Transaction Numbered 1 Through 5 Below Involves an Equity $\quad$

question 66

Essay

Each transaction numbered 1 through 5 below involves an equity security originally acquired at a cost of $1,000. Identify the effect each transaction has on the current ratio and earnings per share by selecting from the effects listed in a through f.You may use each letter more than once or not at all. $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Effects }$
a. Increase in current ratio and earnings per share.
b. Does NOT change earnings per share or the current ratio.
c. Does NOT change earnings per share; may impact the current ratio under certain conditions.
d. Decrease in current ratio and earnings per share.
e. Increases earnings per share.
f. Can't determine the direction of changes in at least one ratio from the event qiven.
____ 1.Passive investment with a current balance sheet value of $1,200 is sold for $1,100.
____ 2.Passive investment with a current balance sheet value of $800 is sold for $800.
____ 3.Passive investment with a current balance sheet value of $1,200 is sold for $1,300.
____ 4.Passive investment has a market value of $800 at yearend.
____ 5.Passive investment has a market value of $1,200 at yearend.

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Definitions:

Employee Wellness Program

A company initiative aimed at improving the health and well-being of its employees through various means such as exercise, stress management, and health education.

Health-Related Behaviors

Actions or habits of individuals that directly impact their physical health, such as exercise, diet, and smoking.

Health Risks

Potential factors or situations that could cause harm or adverse health conditions to individuals.

Medical Costs

Concerns the expenses associated with healthcare services, including treatment, medication, and hospital stays.