Clayton Industrles has the following account balances: The company wishes to ralse $46,000 in cash and is considering two financing optlons: Clayton can sell $46,000 of bonds payable, or 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 alternatlve on its current ratio and debt-to-assets ratio. Required a-1. Compute the current ratio for Clayton's management. Note: Round your answers to 2 decimal places. a-2 Compute the debt-to-assets ratlo for Clayton's management. Note: Round your answers to 1 decimal place. b. Assume that after the funds are Invested, EBIT amounts to $16,400. Also assume the company pays $4,200 in dlvidends or $4,200 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 option