P5-15 (Effects of events on financial ratios) The following balances were taken, from the December 31, 1996 balance sheet of Mariner Enterprises. Current assets $15,000 Long-term assets 60,000 Current liabilities 18,000 Long-term liabilities 45,000 Stockholders’ equity 12,000 Early in 1997 Mariner is considering the financial effects of the five events listed below. Indicate how each event would affect the financial ratios listed below by completing the fol¬ lowing chart. Assume that financial statements are prepared immediately after each event. Treat each event independently, and use the following key: Increase ( + ), Decrease (—), and No Effect (NE). Return on Current Inventory Assets Ratio Turnover (Times) 1. Purchase inventory on account. 2. Sell inventory for an amount greater than its cost. 3. Sell equipment for an amount less than its book value. 4. Pay wages that were accrued in a previous period. 5. Provide a service for which cash was collected in a previous period.