Question 28 (5 points) Review the following transactions and indicate whether it will increase, decrease or not affect the mentioned accounting measure or ratio, or whether more information is needed to determine the effect. Assume that everything else remains the same (i.e. no other transaction than the one described will take place). The company is using the perpetual inventory system, their business year equals the calendar year. Note: even 'working capital is not technically a ratio, please also select whether it would increase, decrease, not be affected, or whether more information is required to calculate the working capital. Transaction: Lakansyl Corp. purchases inventory for $56000 on account. How will the transaction affect the company's liquidity ratio, measured by the current ratio? How will the transaction affect the profitability, measured by the net profit margin? 1. The ratio will increase. 2. The ratio will decrease. How will the transaction affect the company's solvency, measured by times-interest-earned? 3. The ratio will not be affected. 4. More information needed to determine the effect. How will the transaction affect the company's working capital