Clayton Industries has the following account balances: Current assets Noncurrent assets $ 26,000 Current liabilities 82,000 Noncurrent liabilities Stockholders' equity $ 11,000 44,000 53,000 The company wishes to raise $32,000 in cash and is considering two financing options: Clayton can sell $32,000 of bonds payable, or it can issue additional common stock for $32,000. 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. (Round your answers to 2 decimal places.) Currently Current Ratio to 1 to 1 to 1 If bonds are issued If stock is issued 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 $13,600. Also assume the company pays $4,900 in dividends or $4,900 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 Retained Earnings Bonds Stock