More info a. Earned revenue, $2.2 million, on account. b. Borrowed $2.0 million in long-term debt. c. Paid half of the current liabilities. d. Paid selling expense of $0.5 million. e. Accrued general expense of $0.7 million. Credit General Expense Payable, a current liability. f. Purchased equipment for $4.4 million, paying cash of $1.9 million, and signing a long-term note payable for $2.5 million. g. Recorded depreciation expense of $0.5 million. 1. Calculate Hillsboro's current ratio and debt ratio at December 31,2021 . Round to two decimal places. 2. Consider each transaction separately. Calculate Hillsboro's current ratio and debt ratio after each transaction during 2022 -that is, seven times. Round ratios to two decimal places. 3. Complete the statements with either "increase" or "decrease". a. Revenues usually the current ratio. b. Revenues usually the debt ratio. c. Expenses usually the current ratio. (Note: Depreciation is an exception to this rule.) d. Expenses usually the debt ratio. e. If a company's current ratio is greater than 1.0 , as it is for Bellwood, paying off a current liability will always the current ratio. f. Borrowing money on long-term debt will always the current ratio and the debt ratio. Hillsboro Company's condensed and adapted balance sheet at December 31; 2021, follows: Iflitick the icon to view the selected accounts and balances.) Assume that during the first quarter of the following year, 2022, Hillsboro completed the following transactions: (i) (Click the icon to view the transactions:) Read the requirements. Requirement 1. Calculate Hillsboro's current ratio and debt ratio at December 31,2021 (Enter amounts in millons to one decimal place. Round ratios to two decimal places.) Lef's start with calculating Hillsboro's current ratio at December 31.2021