Indicate the effects (increase, decrease, no effect) of the following independent transactions on (1) the profit margin ratio, (2) the plant asset turnover, and (3) the inventory turnover.
$\begin{array}{lll}
&&\text { Profit Margin } & \text { Plant Asset } & \text { Inventory } \
&&\text { Ratio } & \text { Turnover } & \text { Turnover }\
a.& \text {Payment of various repair expenses }&\_\_\_\_&\_\_\_\_&\_\_\_\_\
b.& \text {Purchase of inventory on account }&\_\_\_\_&\_\_\_\_&\_\_\_\_\
c.& \text { Purchase of equipment}&\_\_\_\_&\_\_\_\_&\_\_\_\_\
d.& \text {Payment of bonds payable }&\_\_\_\_&\_\_\_\_&\_\_\_\_\
\end{array}$

Question

Indicate the effects (increase, decrease, no effect) of the following independent transactions on (1) the profit margin ratio, (2) the plant asset turnover, and (3) the inventory turnover.
 $\begin{array}{lll}
&&\text { Profit Margin } & \text { Plant Asset } & \text { Inventory } \
&&\text { Ratio } & \text { Turnover } & \text { Turnover }\
a.& \text {Payment of various repair expenses }&\_\_\_\_&\_\_\_\_&\_\_\_\_\
b.& \text {Purchase of inventory on account }&\_\_\_\_&\_\_\_\_&\_\_\_\_\
c.& \text { Purchase of equipment}&\_\_\_\_&\_\_\_\_&\_\_\_\_\
d.& \text {Payment of bonds payable }&\_\_\_\_&\_\_\_\_&\_\_\_\_\
\end{array}$

Quizplus · Accepted Answer

The Answer of Indicate the effects (increase, decrease, no effect) of the following independent transactions on (1) the profit margin ratio, (2) the plant asset turnover, and (3) the inventory turnover.
 $\begin{array}{lll}
&&\text { Profit Margin } & \text { Plant Asset } & \text { Inventory } \
&&\text { Ratio } & \text { Turnover } & \text { Turnover }\
a.& \text {Payment of various repair expenses }&\_\_\_\_&\_\_\_\_&\_\_\_\_\
b.& \text {Purchase of inventory on account }&\_\_\_\_&\_\_\_\_&\_\_\_\_\
c.& \text { Purchase of equipment}&\_\_\_\_&\_\_\_\_&\_\_\_\_\
d.& \text {Payment of bonds payable }&\_\_\_\_&\_\_\_\_&\_\_\_\_\
\end{array}$

Indicate the Effects (Increase, Decrease, No Effect) of the Following