Compute the following to better understand: practice problem not graded

PROBLEM III (25 Points) 11 Instructions: Indicate the effects of the transactions listed below on each of the following: Use a "+" to indicate an increase , a "-" to indicate a decrease and a "0" to indicate no effect. Assume an initial current ratio of greater than 1.0, a Debt Ratio of 50% and a Debt- to- Worth of 1.0 x. Transaction Net Stock- Working Current Debt Net holders Capital Ratio Ratio Income Equity 1. A cash dividend is declared and paid 2. Cash is obtained each of The following transaction on through long-term 4 to indicate an Micrears, 1 to bank loans. (Do not consider and "or to indicate no effect. Assume an intcia interest) of 340 X, a Debe Ratio of 50% and a 3. Equipment is purchased with short- term notes Interest (Do not consider Earned interest) 4. Merchandise is purchased on credit 5. A fixed asset is sold for more than book value 6. A stock split takes effect 7. Current opera ting expenses, not previously recognized are paid 8. A firm makes a long- term cash investment in the stock of a non-consolidated subsidiary 9. A firm recognizes depreciation expense Stock in