(Effect of transactions and economic events on ratios, LO 3,7) Complete the following table by indicating whether the following transactions or economic events would increase, decrease, or have no effect on the financial ratios listed. Assume that the current ratio is greater than 1.0 and the quick ratio less than 1.0 before considering the effect of each transaction or economic event.

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a. Inventory is written down b. Inventory is sold at its cost c. Inventory is stolen d. The amount of inventory carried by the entity is increased e. Inventory is purchased on credit Current Quick Gross margin ratio ratio percentage Inventory turnover ratio Profit margin percentage Debt-to- equity ratio