You are provided with the following transactions that took place during the year.

Current Free Cash Cash Cash Debt Debt Flow Coverage Coverage Transactions ($80,000) (0.7 times) (0.4 times)

(a) Recorded cash sales $4,800.

(b) Sold land for $20,000 cash.

(c) Declared $6,000 cash dividends.

(d) Paid $5,800 cash dividends declared last year.

(e) Paid amount owed to suppliers, $9,400.

(f) Retired $20,000 convertible bonds payable by issuing common stock.

Instructions For each transaction listed above, indicate whether it will increase (I), decrease (D), or have no effect (NE) on the ratios.

AppendixLO1