Analyzing Cash Flow Ratios Molly Enterprises reported the following information for the past year of operations: For each transaction, indicate whether the ratio will Increase, Decrease, or have No Effect.

Transaction	Free Cash Flow $250,000	Operating-Cash-Flow-to- Current Liabilities Ratio 1.0 times	Operating-Cash-Flow-to- Capital Expenditures Ratio 3.0 times
a. Recorded credit sales of $5,000	AnswerIncreaseDecreaseNo Effect	AnswerIncreaseDecreaseNo Effect	AnswerIncreaseDecreaseNo Effect
b. Collected $3,000 owed from customers	AnswerIncreaseDecreaseNo Effect	AnswerIncreaseDecreaseNo Effect	AnswerIncreaseDecreaseNo Effect
c. Purchased $20,000 of equipment on long-term credit	AnswerIncreaseDecreaseNo Effect	AnswerIncreaseDecreaseNo Effect	AnswerIncreaseDecreaseNo Effect
d. Purchased $15,000 of equipment for cash	AnswerIncreaseDecreaseNo Effect	AnswerIncreaseDecreaseNo Effect	AnswerIncreaseDecreaseNo Effect
e. Paid $4,000 of wages with cash	AnswerIncreaseDecreaseNo Effect	AnswerIncreaseDecreaseNo Effect	AnswerIncreaseDecreaseNo Effect
f. Recorded utility bill of $1,500 that has not been paid	AnswerIncreaseDecreaseNo Effect	AnswerIncreaseDecreaseNo Effect	AnswerIncreaseDecreaseNo Effect