What impact (increase, decrease or no change) would each of the following activities have on a firm's debt ratio (assuming the debt ratio of the firm is currently 40%)? For each activity, assume that the activity has no effect on sales or costs. (This is an all or nothing question - you must answer all parts correctly to receive any credit). 1. Increase Borrow money from a bank on a short term basis (i.e., notes payable) and deposit the proceeds from the loan into the company's checking account Use excess cash held by the firm to buy additional inventory (the reduction in cash will be exactly matched by an increase in inventory). Sell additional common stock and use the proceeds from the sale to buy additional new gross fixed assets 2. Decrease 3. No change For each of the following, determine whether that change in the account represents an operating cash inflow or an operating cash outflow: (note that this is an all or nothing question - you must answer items correctly to receive credit) Increase in inventory 1. Operating cash inflow Increase in accounts payable Decrease in accounts receivable 2. Operating cash outflow Decrease in accruals For each of the following, determine whether the account would appear on an income statement or a balance sheet: (note that this is an all or nothing question - you must answer items correctly to receive credit) Accumulated depreciation Cash Miscellaneous accruals Additional paid in capital 1. Balance Sheet Retained earnings 2. Income Statement Marketable securities Net revenue Cost of goods sold Taxes paid