Required:

Following is a list of paired ratios and transactions. For each transaction, indicate the effect of that transaction on the specific ratio. Use + for increase, - for decrease, and 0 for no effect.

Transaction Ratio

____a.	A firm is required to capitalize leases previously presented only in notes	Debt Ratio of 0.4
____b.	A firm sells its own common stock	Debt/Equity Ratio of 1.12
____c.	A firm has an increase in selling expense with no change in other expenses	Times Interest Earned Ratio of 6.2 to 1
____d.	A firm writes off a sizeable account receivable	Times Interest Earned Ratio of 3.6 to 1
____e.	A firm pays cash for a valuable patent	Debt to Tangible Net Worth Ratio of 1.3 to 1