You have the following balance sheet:

Assets:

Cash $500

Marketable Securities 700

Accounts Receivable 4,150

Inventory 10,650

Total Current Assets 16,000

PP&,net 8,000

Total Assets 24,000

Liabilities and Stock Holder's Equity:

Accounts Payable 1,750

Note Payables 1,250

Total Current Liabilities 3,000

Long-term debt 8,000

Total Liabilities 11,000

Common Stock ($1 Par) 1,000

Contributed Capital in excess of par 2,000

Retained Earnings 10,000

Total Stockholder's Equity 13,000

Total Liabilities and Stockholder's Equity 24,000

Financial Ratios:

Current Ratio 5.33

Quick Ratio 1.78

Debt-to-Equity Ratio 0.85

Calculate the new values for the current, quick, and debt-to-equity ratio due to the immediate impact of each of the following financial decisions. In each case, go back to the original numbers and then answer the question.

a. The firm reduces its inventories by $500 and invest the proceeds in marketable securities

b. The firm decides to purchase 20 new trucks for a total of $500 and pays for them by selling marketable securities

c. The firm borrows from their bank $500 through a short-term loan and invests the money back into new inventory.

d. The business borrows $2,000 from its bank through a 5-year loan (interest due annually, principal due at maturity) and used the proceeds to expand its plant

e. The firm issues $2,000 (net) in common stock and uses the proceeds to expands its plant.

f. The firm gets a long-term loan of $1,000 and uses the proceeds to buy back $1,000 of its outstanding common stock.