10 Clayton Industries has the following account balances: $ 11,000 Current sets Noncurrent assets $ 30,000 72,000 Current liabilities Noncurrent liabilities stockholders' equity 43,000 02:50:00 The company wishes to raise $44,000 in cash and is considering two financing options: Clayton consell $44,000 of bonds payable, or It can issue additional common stock for $44,000. To help in the decision process, Clayton's management wants to determine the effects of each alternative on its current ratio and debt-to-assets ratio. 19 l. Required a-1. Compute the current ratio for Clayton's management. (Round your answers to 2 decimal places.) Current Ratio Currently bonds are und stock is issued to 3-2. Compute the debt-to-assets ratio for Clayton's management. (Round your answers to 1 decimal place.) Debt to Assets Currently Inbonds are leaved b. Assume that after the funds are invested, EBIT, amounts to $14,900. Also assume the company pays $3,500 in dividends or $3,500 in interest depending on which source of financing is used. Based on a 40 percent tax rate, determine the amount of the increase in retained earnings that would result under each financing option. Additional Retained Earnings Bonds Stock