Two lists follow: one for ratios (including the ratio prior to the transactions) and another for transactions. Ratios: 1. Current ratio, 1 9:1 2. Quick ratio, 0.8:1 3. Accounts receivable turnover, 10.6 times 4. Inventory turnover, 7.8 times 5. Return on assets, 126 6. Profit margin, 10.4%% Transactions: 1. Goods costing $360,000 are sold to customers for $480.000 in cash. 2. Accounts receivable of $130,000 are collected. 3. Inventory costing $80,000 is purchased from suppliers on credit. 4. Ashort-term bank loan for $50,000 is repaid to the bank. 5. The company incurs a long-term bank loan of $150,000 to purchase equipment. 5. The company incurs an account payable of $40,000 for operating expenses. 7. The company pays a cash dividend of $200,000. State the immediate effect (increase, decrease, or no effect) of each transaction on each ratio. 1 2 3 4 5 Inventory Ratio/ Current ratio Quick ratio A/R turnover turnover ROA of Transaction of 1.9 to 1 of 0.8 to 1 of 10.6 times of 7.8 times 12% 1. 2_ 3. A. 5. 6. 7