Casey Communications Recently Issued New Common Stock and Used the Proceeds

question 107

Multiple Choice

Casey Communications recently issued new common stock and used the proceeds to pay off some of its short-term notes payable. This action had no effect on the company's total assets or operating income. Which of the following effects would occur as a result of this action?

• A) The company's current ratio increased.
• B) The company's times-interest-earned ratio decreased.
• C) The company's basic earning power ratio increased.
• D) The company's equity multiplier increased.

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A legal settlement in which a dispute is resolved by the parties agreeing (accord) and performing (satisfaction) a negotiated agreement, often involving a payment different from what was originally due.

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