The balance sheet of Walgreens, a leading chain drugstore, as of August 31, 2012, appears as follows (dollars in millions):

REQUIRED:
Assume that the following eight transactions occurred the next year (dollars in millions). Indicate the effect of each transaction on net income (revenues minus expenses), the current ratio (current assets divided by current liabilities), working capital (current assets minus current liabilities), and the debt/equity ratio (total liabilities divided by total shareholders' equity) of Walgreens. Use the following key: increase (+), decrease (–), no effect (NE). Treat each transaction independently.

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Current Working Debt/Equity Transaction 1. Issued ownership shares for $100 cash. 2. Purchased equipment costing $95 for cash. 3. Paid off a $200 long-term liability. 4. Sold inventory costing $500 for $685 cash. 5. Declared a $152 dividend but have not paid. 8. Paid $200 in wages payable. 7. Received $75 from customers on account. 8. Incurred and paid $30 in interest on short-term payables. Net Income Ratio Capital Ratio