Leo Limited is consistently profitable. Leo’s normal financial statement relationships are as follows:

Current ratio 2.6 times Inventory turnover 3.2 times Debt-to-assets ratio 0.7 times Additional information:

1 Customers returned invoiced goods for which they had not paid.

2 Accounts payable were paid on the last day of the financial year.

3 Leo decided to revalue land it had purchased many years previously.
4 Leo declared and paid a cash dividend.
5 Early in the financial year, Leo increased the selling price of one of its products that had a demand in excess of capacity. The number of units sold last year and this year was identical.
For each of the listed transactions or events, determine the effect on each of the ratios in the table (increase, decrease, no effect).