Clayton Industries has the following account balances: Current assets Noncurrent assets $12,000 Current liabilities 77,000 Noncurrent liabilities Stockholders' equity $14,000 47.000 28,000 The company wishes to raise $50,000 in cash and is considering two financing options: Clayton can sell $50,000 of bonds payable, or It can issue additional common stock for $50,000. 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 If bonds are issued if stack is issued Current Ratio to 1 to 1 tol a-2. Compute the debt-to-assets ratio for Clayton's management (Round your answers to 1 decimal place.) Debit to Assets Ratio % Currently if bonds are sued stock is issued % % b. Assume that after the funds are invested, EBIT amounts to $19,400. Also assume the compony pays $4.700 in dividends or $4700 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