Discuss how each of the following transactions will affect the financial ratios specified in the table. You are required to provide the detailed explanations (4 Marks)

Transaction	Ratio
1. Purchased inventory on credit in perpetual inventory system	Quick ratio
2. Wrote off the estimated bad debt against Allowance for Doubtful Debts	Current ratio
3. Collected an account receivable	Receivables turnover
4. Paid trade accounts payable	Return on assets