Problem $13-19$B Effect of transactions on current ratio and working capital

Lowery Company has a current ratio of $2$:$1$ on June $30,$ Year $3.$ Indicate whether each of the follow$-$

ing transactions would increase $(+),$ decrease $(-),$ or not affect $($NA$)$ Lowery's current ratio and its

working capital.

Required

a$.$ Issued $10-$year bonds for $$300,000$ cash.

b$.$ Paid cash to settle an account payable.

c$.$ Sold merchandise for more than cost.

d$.$ Recognized depreciation on plant equipment.

e$.$ Purchased a machine by issuing a long$-$term note payable.

f$.$ Purchased merchandise inventory on account.

g$.$ Received customer payment on account receivable.

h$.$ Paid cash for federal income tax expense $($assume that the expense has not been previously

accrued$).$

i$.$ Declared cash dividend payable in one month.

j$.$ Received cash for interest on a long$-$term note receivable $($assume that interest has not been previ$-$

ously accrued$).$

k$.$ Received cash from issuing a short$-$term note payable.

Traded a truck for a sedan.