Kangas Limited is profitable. Kangas Limiteds financial statement relationships are as follows:

Quick Ratio 1.5 times

Debt to Equity Ratio 0.7 times

Basic Earnings per Share $0.9

1). Sold an item of property plant and equipment with a carrying amount of $600,000 for $200,000.

2). A court announced a decision on a product liability lawsuit and found that Kangas Limited is liable for $100,000 damages to be paid within one year. The management of Kangas Limited are contemplating an appeal to the decision, but the companys legal representatives believe that Kangas Limited would have very little chance of winning. Contingent liability in the amount of $100,000 is currently disclosed in the financial statements.

3) capitalise research and development costs on equipment that had been treated as an expense

For each transaction, indicate the effect on the current ratio, debt to equity ratio and earning per share, and explain why thanks.