Exercise 10-25A Determining the effects of financing alternatives on ratios Clayton Industries has the following account balances: LO 10-8 $20,000 Current lablities Current assets Noncurrent assets 0,000 Noncurrent labilties Stockholders' equity $10,000 50,000 40,000 The company wishes to raise $40,000 in cash and is considering two financing options: Clayton can sell $40,000 of bonds payable, or it can issue additional common stock for $40,000. 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