Effect of various transactions on financial statement ratios. Indicate the immediate effects (increase, decrease, no effect) of each of the following independent transactions on (1) the rate of return on common shareholders' equity, (2) the current ratio, and (3) the debt-equity ratio. State any necessary assumptions.

a. A firm purchases, on account, merchandise inventory costing \(\$ 205,000\).

b. A firm sells for \(\$ 150,000\), on account, merchandise inventory costing \(\$ 120,000\).

c. A firm collects \(\$ 100,000\) from customers on accounts receivable.

d. A firm pays \(\$ 160,000\) to suppliers on accounts payable.

e. A firm sells for \(\$ 10,000\) a machine costing \(\$ 40,000\) and with accumulated depreciation of \(\$ 30,000\).

f. A firm declares dividends of \(\$ 80,000\). It will pay the dividends during the next accounting period.
g. A firm issues common stock for \(\$ 75,000\).
h. A firm acquires a machine costing \(\$ 60,000\). It gives \(\$ 10,000\) cash and signs a note for \(\$ 50,000\) payable five years from now for the balance of the purchase price.