For each of the following adjusting entries state whether the entry increases, decreases, or has no effect on the following financial ratios: current ratio, debt-to-equity ratio, profit margin ratio, and return on equity. Assume the current ratio and debt-to-equity ratio are greater than one and the profit margin ratio and return on equity are less than one before each of the adjusting entries is considered.

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a. Dr. Depreciation expense 220,000 Cr. Accumulated depreciation 220,000 b. Dr. Insurance expense 15,000 Cr. Prepaid insurance 15,000 c. Dr. Royalty receivable 102,000 Cr. Royalty revenue 102,000 d. Dr. Unearned revenue 55,000 Cr. Revenue 55,000 e. Dr. Wages expense 12,500 Cr. Accrued wages payable 12,500