Clayton Industries has the following account balances 428 Current assets Noncurrent assets $ 26,000 86,000 Current liabilities Noncurrent liabilities Stockholders' equity $ 13, eae 56,000 43,000 eBook H Powe The company wishes to raise $48,000 in cash and is considering two financing options: Clayton can sell $48,000 of bonds payable, or it can issue additional common stock for $48,000 To help in the decision process. Clayton's management wants to determine the effects of each alternative on its current ratio and debt-to-assets ratio Required 9-1. Compute the current ratio for Clayton's management (Round your answers to 2 decimal places.) rence Currently If bonds are issued | ur stock is issued Current Ratio tot to 1 lo 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 $19,200. Also assume the company pays $3,700 in dividends or $3,700 In interest depending on which source of financing is used. Based on a 40 percent tax rate, determine the amount of the increase in retained earnings that would result under each financing option Additional Retained Earnings Bonds Stock