State the immediate effect (increase, decrease, no effect) of the following trans¬ actions on:

a. Current ratio

b. Quick ratio

c. Working capital

d. ROE

e. Debt/equity ratio (D/E(l))

Transactions:
1. Inventory costing $25,000 is purchased on credit.
2. Inventory costing $125,000 is sold on account for $158,000.
3. Payments of $65,000 are made to suppliers.
4. A machine costing $120,000 is purchased; $30,000 is paid in cash, and the bal¬ ance will be paid in equal instalments for the next three years.
5. Common shares worth $100,000 are issued.
6. Equipment costing $80,000 with accumulated amortization of $50,000 is sold for $40,000 in cash.
7. Goods that cost $35,000 were destroyed by fire. The residual value of some of the partly burned goods was $3,000, which is received in cash. The goods were not insured.