Gopherland Inc. needs to raise capital in order to finance expansion. On January 1, Year 1, 30,000 shares of $2 par common stock were sold for $9 per share, and 10,000 shares of $20 par, 10% preferred stock were sold at $30 per share. Which one of the following statements is correct with respect to the effect the issuance of the common stock and preferred stock had on the financial statements of Gopherland Inc. in Year 1? Multiple Choice Increased cash flows from investing activities Increased liabilities Decreased earned capital > 5 With respect to the return-on-equity ratio and current ratio, which one of the following is correct (true) with respect to how increasing these ratios would generally be viewed? A Beturn on equity Favorable Current ratio Favorable B. Favorable 33:21 C Unfavorable Unfavorable Unfavorable D Unfavorable Favorable Multiple Choice O "B