After reading chapter 2 of the textbook: answer with: 1) increase, 2) decrease, 3) does not affect 2. An increase in depreciation expense earnings and as cash flow 11. Operating at a loss the debt ratio 12. The return on equity if inventory is sold for a loss 13. Increased use of trade credit (accounts payable) to acquire your inventory sales outstanding days 14. Increased depreciation expense return on equity 15. If a firm repurchase shares, total asset turnover 18. If a firms current ratio increases the firm's liquidity position 20. Increasing the firm's cash fixed asset turnover