PLEASE HELP.

note: ratio behavior is either No Change, Increase, or Decrease

To provide a consistent frame of reference for the company's financial statements and ratios, assume that the following balance sheet and income statement reflect the company's pretransaction condition and performance. Fresno Furniture Manufacturing Inc.'s Pretransaction Fresno Furniture Manufacturing Inc.'s Statement of Financial Condition Pretransaction Statement of Financial Performance $15,000 Accounts payable $20,000 Cash Sales $5,000,000 10,000 Wages payable Marketable securities 20,000 Less: Cost of goods sold 2,000,000 10,000 Accounts receivable 470,000 Taxes payable Gross profit 3,000,000 500,000 Notes payable 50,000 Inventory Less: Operating expenses 600,000 Prepaid expenses Total current liabilities 5,000 100,000 Operating profit (EBIT) 2,400,000 Total current assets 1,000,000 Long-term debt 500,000 Less: Interest expense 33,000 Total liabilities 600,000 Earnings before taxes (EBT) 2,367,000 Common stock Gross plant and 1,500,000 150,000 Less: Tax expense3 equipment 828,450 Accumulated depreciation Capital paid in excess of 350,000 Net income 500,000 $1,538,550 par Net plant and equipment 1,000,000 Retained eamings 900,000 Cost of goods sold equals 40 % of sales. Total equity 1,400,000 2Interest expense equals 6 % of the combined Total assets $2,000,000 Total debt and equity $2,000,000 notes payable and long-term debt balances. The average federal and state tax rate is 35%. Indicate if any of the listed financial statement accounts is affected by the following business transactions and whether the listed ratios will increase decrease, or remain unchanged as a result of the transaction. (Hint: Assume that the business transaction occurs exactly as stated without interpreting it further. Do not consider any related transactions that may occur before or after the specified transaction.) Business Transaction 1 Fresno Furniture Manufacturing Inc. (FFM) sells $165,000 of merchandise on credit. Check if the Account Is Affected by the Financial Ratio Ratio's Behavior Financial Account Specified Transaction Price-to-earnings ratio Cash Times interest earned Accounts payable Quick ratio Sales Inventory turnover ratio Retained earmings Market-to-book ratio Accounts receivable Debt ratio Inventory Business Transaction 2 A $500,000 10-year bank loan is initiated, and the funds are placed in Fresno Furniture Man ufacturing Inc. (FFM)'s checking account. Check if the Account Is Affected by the Financial Ratio Ratio's Behavior Specified Transaction Financial Account Gross profit margin Common stock Debt ratio Marketable securities Return on assets Gross plant and equipment Times interest earned Cash Operating profit margin Long-term debt Fixed asset turnover