Composite Solutions Company (CSC) has the following account belances Current assets Noncurrent assets S 11,000 80,000 Noncurrent liabilities 41,000 39,000 S 11,000 Current liabilities Stockholders' equity The company wishes to raise $31,000 in cash and is considering two financing options: CSC can sell S31,000 of bonds payable, or it can issue additional common stock for $31,000. To help in the decision to assets ratio Required ess, CSC's management wants to determine the effects of each alternative on its current ratio and debt a-1. Compute the current ratio for CSC's management (Round your answers to 2 decimal places.) Currently If bonds are issued If stock is issued 100 to 1 to 1 to 1 a-2. Compute the debt to assets ratio for CSC's mansgement (Round your answers to 1 decimal place.) Ratio Currently If bonds are issued If stock is issued b. Assume thst aftfer the funds are invested EBIT amounts to $18,100 Aso assume the c $3 .200 in dividends or $3,200 percent tax rate, determine the amount of the incresse financing opion in interest depending on which source of financing is used. Based on a 30 iretaned earnings thst would resut under each Retained Earnings Bonds Stock Hints References eBook & Resources