Required information [The following information applies to the questions displayed below.] Edward Allen Interiors Inc. is a leading manufacturer and retailer of home furnishings in the United States and abroad. The following is adapted from Edward Allen's September 30, 2016, trial balance. Accounts Payable Accounts Receivable Cash Common Stock Equipment Inventory Notes Payable (long-term) Notes Payable (short-term) Prepaid Rent Retained Earnings Salaries and Wages Payable Software $ 120 28 136 26 365 172 225 28 381 38 65 Assume that the following events occurred in the following quarter. a. Paid $60 cash for additional inventory. b. Issued additional shares of common stock for $25 in cash. c. Purchased equipment for $190; paid $90 in cash and signed a note to pay the remaining $100 in two years. d. Signed a short-term note to borrow $13 cash. e. Conducted negotiations to purchase a sawmill, which is expected to cost $34. 7-a. Use your response to part 6 to calculate Edward Allen's current ratio after the transactions listed in (a)-(e). (Round your answer to 2 decimal places.) Current ratio after the transactions (a)-(e) 7-b. Based on this calculation and the calculation in part 1, indicate whether the above transactions increase or decrease the company's ability to pay current liabilities. O Increase O Decrease