Barnaby Cartage Company has current assets of $800,000 and current liabilities of

$500,000. What effect would the following transactions have on the firms current ratio

(and state the resulting figures)?

a. Two new trucks are purchased for a total of $100,000 in cash.

b. The company borrows $100,000 short term to carry an increase in receivables of the

Same amount.

c. Additional common stock of $200,000 is sold and the proceeds invested in the expansion

of several terminals.

d. The company increases its accounts payable to pay a cash dividend of $40,000 out of

cash.