Clayton industries has the following account baiances The company wishes to raise 543,000 in cash and is considering two financing options: Ciayton can seli 543,000 of bonds payable or it can issue additionel common stock for 543,000 . To help in the decision process, Clayton's management wants to determine the effects of eoch oitemative on its current ratio and debt-to-assets ratio. Required a-1. Compute the current ratio for Clayton's management. Note: Round your nnswers to 2 decimal pleces. o-2. Compute the debt-to-assets ratio for Clayton's manogement. Note: Round your answers to 1 decimal place. b. Assume that after the funds are invested, EBIT amounts to $14,500. Also assume the company pays 53,500 in dividendis or 53,500 in interest depending on which source of financing is used. 8 ased on a 40 percent tax rate, determine the amount of the increase in retained earnings thot would result under each financing option. Clayton industries has the following account baiances The company wishes to raise 543,000 in cash and is considering two financing options: Ciayton can seli 543,000 of bonds payable or it can issue additionel common stock for 543,000 . To help in the decision process, Clayton's management wants to determine the effects of eoch oitemative on its current ratio and debt-to-assets ratio. Required a-1. Compute the current ratio for Clayton's management. Note: Round your nnswers to 2 decimal pleces. o-2. Compute the debt-to-assets ratio for Clayton's manogement. Note: Round your answers to 1 decimal place. b. Assume that after the funds are invested, EBIT amounts to $14,500. Also assume the company pays 53,500 in dividendis or 53,500 in interest depending on which source of financing is used. 8 ased on a 40 percent tax rate, determine the amount of the increase in retained earnings thot would result under each financing option