In the right-hand column below, certain financial ratios are listed. To the left of each ratio is a business transaction or event relating to the operating activities of Graham Company.
1. Inventory was sold for cash at a profit. Debt-to-equity ratio
2. Land was purchased for cash. Earnings per share
3. Inventory was sold on account at cost. Acid-test ratio
4. Some accounts payable were paid off. Working capital
5. A customer paid an overdue bill. Average collection period
6. A cash dividend was declared, but not yet paid. Current ratio
7. A previously declared cash dividend was paid. Current ratio
8. The company€™s common stock price increased. Book value per share
9. The company€™s common stock price increased. Dividend yield ratio
Earnings per share remained unchanged.
10. Property was sold for a profit. Return on total assets
11. Obsolete inventory was written off as a loss. Inventory turnover ratio
12. Bonds were sold with an interest rate Return on common stockholders€™ equity less than the company€™s return on assets.
13. The company€™s common stock price decreased. Dividend payout ratio
The dividend paid per share remained the same.
14. The company€™s net income decreased, but Times interest earned long-term debt remained unchanged.
15. An uncollectible account was written off Current ratio against the Allowance for Bad Debts.
16. Inventory was purchased on credit. Acid-test ratio
17. The company€™s common stock price increased. Price-earnings ratio
Earnings per share remained unchanged.
18. The company paid off some accounts payable. Debt-to-equity ratio
Required:
Indicate the effect that each transaction or event would have on the ratio listed opposite to it. State the effect in terms of increase, decrease, or no effect on the ratio involved, and give the reason for your choice. In all cases, assume that the current assets exceed current liabilities both before and after the event or transaction. Use the following format for youranswers:

Effect on Ratio Reason tor Increase, Decrease, or No Effect 1. 2. Etc.