Analyze the Transactions of the Business Organized as a Corporation

question 43

Essay

Analyze the transactions of the business organized as a corporation described below and indicate their effect on the basic accounting equation. Use a plus sign (+) to indicate an increase and a minus sign (-) to indicate a decrease. $$\begin{array} { | l | l | l | l | } \hline & \text { Assets } &= \text { Elabilities } & \text { + Shareholders' Equity } \\\hline \begin{array} { l } \text { 1. Received cash for services } \\\text { provided. }\end{array} & & & \\\hline \begin{array} { l } \text { 2. Purchased office equipment } \\\text { on credit. }\end{array} & & & \\\hline \text { 3. Paid employees' salaries. } & & & \\\hline \begin{array} { l } \text { 4. Received cash from customer } \\\text { in payment on account. }\end{array} & & & \\\hline \begin{array} { l } \text { 5. Paid telephone bill for the } \\\text { month. }\end{array} & & & \\\hline \begin{array} { l } \text { 6. Paid for office equipment } \\\text { purchased in transaction 2. }\end{array} & & & \\\hline \text { 7. Purchased office supplies on } \\\text { credit. }\\\hline \text { 8. Dividends were paid. } & \\\hline \text { 9. Obtained a loan from the } & \\\text { bank. } & \\\hline \text { 10. Billed customers for services } & \\\text { performed. } &\\\hline\end{array}$$

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Definitions:

Inventory Turnover

A ratio that shows how many times a company's inventory is sold and replaced over a specific period, indicating the efficiency of inventory management.

Cost Ratio

A measure comparing a company's costs (like production or operating costs) to another metric, often sales, to assess efficiency.

Year-End Balances

The final amounts in financial accounts at the conclusion of a fiscal year, used in financial reporting and analysis.

Sustainable Growth Rate

The maximum rate at which a company can grow its sales, earnings, and dividends without increasing its equity and by using internally generated funds.