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 theratios shown. Assume each ratio is less than 1.0 before the action is taken.

Action current ratio acid test ratio debt to equity ratio

Issuance of long term bonds

Issuance of short term notes

Payment of accounts payable

Purchase of inventory on account

Purchase of inventory for cash

Purchase of equipment with a 4 year note

Retirement of bonds

Sale of common stock

Write off of obsolete inventory

Purchase of short term investment for cash

Decision to refinance on a long term basis

some currently maturing debt