The president of Oskelaneo Ltd. (Oskelaneo) wants to know the effect a number of transactions and economic events will have on several financial measures for the company’s fiscal year ended September 30, 2014. Complete the following table by indicating whether the listed transactions or economic events would increase, decrease, or have no effect on the financial measures listed. Explain your reasoning and state any assumptions that you make. Consider each item independently.

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Debt-to- Interest Cash Return Ratio/amount before taking the equity Current coverage from on transaction/economic event ratio ratio ratio operations assets into account 1.3:1 1.67 3.98 $650,000 5.6% a. Oskelaneo paid amounts owing to employees. b. Oskelaneo entered into a new capital lease. C. Oskelaneo recorded a future income tax expense and corre- sponding liability due to tempo- rary differences associated with new equipment. d. Oskelaneo received cash from a customer for services it will provide in February 2015. e. Oskelaneo retired a bond early and recognized a loss of $25,000 (the bond retired was classified as a non-current liability).