Exercise 10-25A (Algo) Determining the effects of financing alternatives on ratios LO 10-8 Clayton Industries has the following account balances: Current assets Noncurrent assets $ 26,000 Current liabilities 86,000 Noncurrent liabilities Stockholders' equity $13,000 59,000 40,000 The company wishes to raise $38,000 in cash and is considering two financing options: Clayton can sell $38,000 of bonds payable, or It can issue additional common stock for $38,000. To help in the decision process, Clayton's management wants to determine the effects of each alternative 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. Current Ratio Currently 2.00 to 1 If bonds are issued 1.88 to 1 If stock is issued to 1 a-2 Compute the debt-to-assets ratio for Clayton's management. Note: Round your answers to 1 decimal place. Debt to Assets Currently If bonds are issued If stock is issued Ratio 64.3 % % %