In the right-hand column below, certain financial ratios are listed. To the left of each ratio is a business transaction or event relating to the operating activities of Flatiron Company. usiness Trans ve 1 Declared a cash dividend Current ratio 3. Issued bonds with an interest rate of 9%. The company's return on Acid-test (quick) ratio Return on common assets is 12% 4. Net incomedecreased by 10% between last year and this year. Long-term debt remained unchanged. 5. Paid a previously declared cash dividend 6. The market price of the company's common stock dropped from Times interest eamed Current ratio 22% to 18. The dividend paid per share remained unchanged. 7. Obsolete inventory totaling $125,000 was written off as a loss. 8. Sold inventory for cash at a profit 9. Changed customer credit terms from 2/10, n/15 to 2/15, n/30 to Dividend payout ratio Inventory turnover ratio Debt-to-equity ratio Accounts receivable turnover ratio Book value per share comply with a change in industry practice Issued a common stock dividend on common stock. 11. The market price of the company's common stock increased from 224, to 32 12. Paid $55,000 on accounts payable. 13 Issued a common stock dividend to common stockholders. 14. Paid accounts payable. 15 Purchased inventory on credit terms 16. Wrote off an uncollectible account against the Allowance for Bad Book value per share Working capital Eamings per share Debt-to-equity ratio Acid-test (quick) ratio Current ratico Price-earnings ratio Dividend yield ratio 17. The market price of the company's common stock increased from 22% to 32% Earnings per share remained unchanged 18. The market price of the company's common stock increased from -22% to 32% The dividend paid per share remained unchanged. Required Indicate the effect that each business transaction or event would have on the ratio listed opposite to it. State the effect in terms of increase, decrease, or no effect on the ratio involved. In all cases, assume that the current assets exceed the current liabilities both before and after the event or transaction. Ratio Effect on Ratio 1. Current ratio 2. Acid-test (quick) ratio 3. Return on common 4. Times interest earned 5. Current ratio 6. Dividend payout ratio 7 Inventory turnover ratio 8. Debt-to-equity ratio 9. Accounts receivable turnover ratio 10 Book value per share 11. Book value per share 12 Working capital 13. Earnings per share 14. Debt-to-equity ratio 15 Acid-test (quick) ratio 16. Current ratio 17. Price-earnings ratio 18 Dividend yield ratio stockholders' equity