18. State the immediate effect (increase, decrease, no effect) of the following transactions on:

a. Current ratio

b. Quick ratio

c. Working capital

d. ROE

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

1) Inventory worth $25,000 is purchased on credit. 2) Inventory worth $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 balance will be paid in equal installments for the next three years. 5) Shares of common stock worth $100,000 are issued. 6) Equipment costing $80,000 with accumulated depreciation of $50,000 is sold for $40,000 in cash. 7) Goods worth $35,000 were destroyed by fire. The salvage value of some of the partly burned goods was $3,000, which is received in cash. The goods were not insured.