Indicate the effects (increase, decrease or no effect) of each of the following independent transactions on:

1. The rate of return on shareholders' equity 

2. The current ratio 

3. The debt-to-equity ratio.

State any necessary assumptions.

a. Inventory costing $410 000 is purchased on account,

b. Inventory costing $240 000 is sold on account for $300 000.

c. Collections from customers on accounts receivable total $100 000.

d. Payments to suppliers on accounts payable total $160 000.

e. A machine costing $80 000, on which $60 000 of depreciation was charged, is sold for $20 000.

f. Dividends of $80 000 are declared. The dividends will be paid during the next accounting period,

g. Ordinary shares are issued for $175 000.

h. A machine costing $60 000 is acquired. Cash of $10 000 is given, and a note for $50 000 payable five years from now is signed for the balance of purchase price.