Most decisions made by management impact the ratios analysts use to evaluate performance. Indicate $($by letter$)$ whether each of the actions listed below will immediately increase $($I$),$ decrease $($D$),$ or have no effect $($N$)$ on the ratios shown. Assume each ratio is less than $1\mathrm{.}0$ before the action is taken.

$\backslash$table$[[$Action$,\backslash$table$[[$Current$],[$Ratio$]],\backslash$table$[[$Acid$-$Test$],[$Ratio$]],\backslash$table$[[$Debt to$],[$Equity Ratio$]]],[1.$ Issuance of long$-$term bonds,,,$],[2.$ Issuance of short$-$term notes,,,$],[3.$ Payment of accounts payable,,,$],[4.$ Purchase of inventory on account,,,$],[5.$ Purchase of inventory for cash,,,$],[6.$ Purchase of equipment with a $4-$year note,,,$],[7.$ Repayment of long$-$term notes payable,,,$],[8.$ Issuance of common stock,,,$],[9.$ Payment for advertising expense,,,$],[10.$ Purchase of short$-$term investment for cash,,,$],[11.$ Reclassification of long$-$term notes payable to current notes payable,,,$]]$The following schedule relates the income statement with cash flows from operating activities, derived by both the direct and indirect

methods. The amounts for income statement elements are missing.

Required:

Deduce the missing amounts and prepare the income statement.