Discuss how each of the following transactions will affect the financial ratios specified in the table (i. e. increase, decrease, no effect). You are required to provide the detailed explanations (4 Marks)

Transaction	Ratio
1. A change in accounting method for depreciation from straight line to diminishing balance	Profit margin
2. Wrote off a bad debt using direct write-off method	Current ratio
3. Collected an account receivable	Average collection period
4. Recognising a loss through obsolescence of certain inventory items.	Quick ratio

Word limit: 250