1. Business
2. Accounting
3. for each transaction below write the net effect on current...

# Question: for each transaction below write the net effect on current...

###### Question details

For each transaction below, write the net effect on Current Assets (CA), Total Equity (E), Gross Profit (GP), Net Income Before Taxes (NIBT), and Cash flows from operating activities (CFO).

• Write only the effect for the current period.
• Assume the company is a merchandising firm.
• If the net effect is negative, include a negative sign. If no effect, write 0.
• For CFO, positive net inflows are positive, net cash outflows are negative.
• For classifying interest expense, assume U.S. GAAP conventions.
 Transaction CA Equity GP NI (pretax) CFO Accrued $114 of rent expense (on executive offices) which will be paid next year. Answer Answer Answer Answer Answer Paid suppliers$75 for inventory that was delivered last year. Answer Answer Answer Answer Answer Sold gift cards worth $11. Expect redemption within 1 year. Answer Answer Answer Answer Answer Customers buy merchandise (inventory value of$25) for $55 on store credit. Will pay next period. Ignore taxes. Answer Answer Answer Answer Answer Paid$15 of interest expense recognized this period. Answer Answer Answer Answer Answer