On December 31, 2000, Energy Company's current ratio was 3:1 before the following transactions were completed:

1. Purchased merchandise on account.

2. Paid a cash dividend declared on November 15,2000 .

3. Sold equipment for cash.

4. Temporarily invested cash in trading securities.

5. Sold obsolete merchandise for cash (at a loss).

6. Issued 10-year bonds for cash.

7. Wrote off goodwill to retained earnings.

8. Paid cash for inventory.

9. Purchased land for cash.

10. Returned merchandise that had not been paid for.

11. Wrote off an account receivable as uncollectible. Uncollectible amount is less than the balance in the Allowance for Uncollectible Accounts.

12. Accepted a 90 -day note from a customer in settlement of customer's account receivable.

13. Declared a stock dividend on common stock.

Required Consider each transaction independently of all the others.

a. Indicate whether the amount of working capital will increase, decrease, or be unaffected by each of the transactions.

b. Indicate whether the current ratio will increase, decrease, or be unaffected by each of the transactions.