Two lists follow: one for ratios (including the ratio prior to the transactions) and another for transactions.

Ratios:

1. Current ratio, 1.2:1

2. Quick ratio, 0.6:1

3. Accounts receivable turnover, 12 times

4. Inventory turnover, 6 times

5. Return on assets, 10%

6. Return on equity, 15%

Transactions:

1. Goods costing $200,000 are sold to customers on credit for $380,000.

2. Accounts receivable of $140,000 are collected.

3. Inventory costing $110,000 is purchased from suppliers.

4. A long-term bank loan for $500,000 is arranged with the bank, and the company receives the cash at the beginning of the year.

5. The bank loan carries an interest rate of 18% and the interest payment is made at the end of the year. Assume no interest expense had previously been recognized.

6. The company uses $40,000 to buy short-term investments.

7. New common shares are issued for $250,000.

Required

State the immediate effect (increase, decrease, or no effect) of each transaction on each ratio. You may want to format your answer in a table with the ratios across the top and the transactions down the left side.