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Determine the effect of the following scenario on each of the following ratios: Debt to Equity Ratio Profit Margin Ratio Working Capital Ratio Deal ONLY

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Determine the effect of the following scenario on each of the following ratios: Debt to Equity Ratio Profit Margin Ratio Working Capital Ratio Deal ONLY with the facts provided in the scenario, and determine the direct effects of the scenario ONLY in the current period. Assume no effect on the market price of stock. Assume the Current Ratio prior to any scenario was 2.1 Debt to Equity Ratio - (Total Liabilities) / (Total Stockholders' Equity) Profit Margin Ratio = (Net Income) / (Net Sales) Working Capital Ratio - Current Assets. Current Liabilities Alex's Alpaca Rides split its stock 2 for 1 in the current period. Multiple Choice The Debt to Equity Ratio will decrease, the Profit Margin Ratio will decrease, and no effect on the Working Capital Ratio O No effect on the Debt to Equity Ratio, no effect on the Profit Margin Ratlo, and no effect on the Working Capital Ratio No effect on the Debt to Equity Ratio, the Profit Margin Ratio will increase, and no effect on the Working Capital Ratio The Debt to Equity Ratio will decrease, no effect on the Profit Margin Ratio, and no effect on the Working Capital Ratio

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