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Selected financial statement ratios affected

A company might need to purchase some equipment (e.g., computer hardware and networking equipment) to expand its online course offerings, so you have been asked to examine how the purchase of this equipment, as well as its depreciation, will affect the company's ratios.

How are the selected financial statement ratios affected by the purchase of non-current assets?

How are the selected financial statement ratios affected by the purchase of non-current assets?

Solution Preview

A company might need to purchase some equipment (e.g., computer hardware and networking equipment) to expand its online course offerings, so you have been asked to examine how the purchase of this equipment, as well as its depreciation, will affect the company's ratios.

How are the selected financial statement ratios affected by the purchase of non-current assets?

There will be increase in Assets and depreciation. DEPRECIATION:
Deprecation means decline in value of an asset. ...

Solution Summary

This explains the selected financial statement ratios affected by the purchase of non-current assets

$2.19