25 Question 31 (5 points) Review the following transactions and indicate whether it will increase, decrease or not affect the mentioned accounting measure or ratio, or whether more information is needed to determine the effect. Assume that everything else remains the same (.e. no other transaction than the one described will take place). The company is using the perpetual inventory system, their business year equals the calendar year. Note: even working capital' is not technically a ratio, please also select whether it would increase, decrease, not be affected, or whether more information is required to calculate the working capital. Transaction: Lakansyl Corp. purchases a equipment for $56000 in cash. How will the transaction affect the profitability, measured by the return-on- assets? How will the transaction affect the company's solvency, measured by the debt-to-total-asset ratio? 1. The ratio will increase. 2. The ratio will decrease. How will the transaction affect the company's solvency, measured by times-interest-earned? 3. The ratio will not be affected. 4. More information needed to determine the effect. How will the transaction affect the company's working capital? How will the transaction affect the company's liquidity ratio, measured by the current ratio