1. [Transaction effects on ratios, CFAC adapted] A company's current ratio is 2.0. The company uses some of its cash to retire notes payable that are due within ore year.

a. Describe the effect of this transaction on the company's (i) Current ratio (ii) Asser turnover ratio (iii) Cash burn ratio (iv) Debt-to-equity ratio h. Redo part a assuming that the company's current ratio was 08 at the time of the transaction.