Show how each of these transactions would affect the ratio by using "fake" numbers to show your work.

Action Current Ratio Acid-Test Ratio Debt-to- Equity Ratio 1. Payment of accounts payable 2. Purchase of inventory on account 3. Purchase of inventory with cash 4. Payment of bonds at maturity with sinking fund 5. Issuance of common stock for cash 6. Pay utilities expense 7. Purchase trading security with cash Payment of accounts payable if the ratios are less than 1 8