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CMA / P2 / Sec. A / HW-1 / Class 7
1
CMA Part 2
Financial Decision Making
Financial Statement Analysis
Sec. A (Homework – 1)
No. Event
Impact on
Working Capital Current Ratio Quick Ratio
1 Purchase inventory for credit
2 Purchase inventory for cash
3 Sales for Cash
4 Sales for Credit
5 Collection from Accounts Receivable
6 Payment to Accounts Payable
7 Payment of Short Term Loan
8 Payment of Long Term Loan
9 Declaration of Cash Dividends
10 Payment of Cash Dividends
11 Declaration of Stock Dividends
12 Distribution of Stock Dividends
Note: Please insert the signs ( – , ↑ , ↓ ) as explained below:
For no Charge = –
For Increase = ↑
For Decrease = ↓
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