Clayton Industries has the following account balances $ 25,000 Current liabilities Current assets Noncurrent assets $ 12,0060 41,000 62,000 90,000 Noncurrent liabilities Stockholders' equity The company wishes to raise $34,000 in cash and is considering two financing options: Clayton can sell $34,000 of bonds payable, or it can Issue additional common stock for $34,000. To help in the decislon process, Clayton's management wants to determine the effects of each alternative on its current ratio and debt-to-assets ratio Required a-1. Compute the current ratio for Clayton's management. (Round your answers to 2 decimal places.) Current Ratio Currenty If bonds are issued If stock is issued to 1 to 1 to 1 a-2. Compute the debt-to-assets ratio for Clayton's management. (Round your answers to 1 decimal place.) Debt to Assets Ratio Currently If bonds are issued If stock is issued b. Assume that after the funds are invested, EBIT amounts to $14,300. Also assume the company pays $3,800 in dividends or $3,800 in interest depending on which source of financing is used. Based on a 40 percent tax rate, determine the amount of the increase in retalned earnings that would result under each financing optlon Additional Retained Earnings Bonds Stock