Clayton Industries has the following account balances. Current assets $ 29,000 Current liabilities $ 13,000 Noncurrent assets 79,000 Noncurrent liabilities 46,000 Stockholders' equity 49,000 The company wishes to raise $46,000 in cash and is considering two financing options: Clayton can sell $46,000 of bonds payable it can issue additional common stock for $46,000. 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 a-1. Compute the current ratio for Clayton's management a-2. Compute the debt-to-assets ratio for Clayton's management. b. Assume that after the funds are invested, EBIT amounts to $16,100. Also assume the company pays $4,800 in dividends or $4,80 in interest depending on which source of financing is used. Based on a 30 percent tax rate, determine the amount of the increase in retained earnings that would result under each financing option Complete this question by entering your answers in the tabs below. Req A1 Reg A2 ReqB Compute the current ratio for Clayton's management. (Round your answers to 2 decimal places.) Current Ratio to 1 Currently ir bonds are issued if stock is issued to 1 to 1 Compute the debt-to-assets ratio for Clayton's management. Debt to Assets Ratio % Currently If bonds are issued % If stock is issued % Reg A1 Req A2 Assume that after the funds are invested, EBIT amounts to $16,100. Also assume the company pays $4,800 in dividends or $4,800 in interest depending on which source of financing is used. Based on a 30 percent tax rate, determine the amount of the increase in retained earnings that would result under each financing option Additional Rotained Earnings Bonds Stock