Determine the effect on the current ratio , the quick ratio , net working capital ( current assets less current liabilities ) , and the debt ratio ( total liabilities to total assets ) of each of the following transactions . Consider each transaction* separately and assume that prior to each transaction the current ratio is 2X , the quick ratio is 1X , and the debt ratio is 50% . The company uses an allowance for* doubtful accounts . Use I for increase , D for decrease , and N for no change . Current Quick Net Debt Ratio Ratio Working Ratio Capital ( a) Borrows $ 10 , 000 from bank on short- term note ( b) Writes off a $5, 000 customer account ( C ) Issues $ 25, 000 in new common stock for cash (d ) Purchases for cash $ 7, 000 of new equipment ( e ) Inventory of $5 , 000 is destroyed by fire* ( f ) Invests $ 3, 000 in short- term marketable securities ( 5 ) Issues $ 10, 000 long-term bonds |( h ) Sells equipment with book value of $ 6 , 000 for $ 7 , 000 ( 1 ) Issues $ 10 , 000 stock in exchange for land ( 1) Purchases $3, 000 inventory for cash ( K ) Purchases $5 , 000 inventory on credit ( 1) Pays $ 2, 000 to supplier to reduce account payable