Bob Johnston Company reported these ratios at December $31,2021($dollar amounts in millions$)$:

Current ratio $=\frac{\text{\$}40}{\text{\$}30}=1\mathrm{.}33,$ Debt ratio $=\frac{\text{\$}40}{\text{\$}70}=0\mathrm{.}57$

Bob Johnston Company completed these transactions during $2022$

$($Click the icon to view the transactions$)$

Read the requirement.

Requirement $1.$ Determine whether each transaction improved or hurt the company's current ratio and debt ratio.

a$.$ Purchased equipment on account, $$7.($Review each transaction independently. Round calculations to two decimal places.$)$

Current ratio $=$

Debt ratio $=$

current ratio

debt ratio

b$.$ Paid long$-$term debt, $$11.$

Current ratio $=$

Debt ratio $=$

current ratio

$]$debt ratio

c$.$ Collected cash from customers in advance, $$2$

Current ratio $=$

Debt ratio $=$

current ratio

debt ratio