Discussion Case C$12-74$Page $784$ of the textbook

Could you please assist me in addressing the requirements?

$($C$12-74.($Learning Objective $4,5$: Assess the effects of transactions on a company$)$ Suppose United Cable and Entertainment, Inc., is having a bad year in $2021,$ because the company has incurred a $$4\mathrm{.}9$ billion net loss. The loss has pushed most of the company$$s return measures into the negative column, and its current ratio dropped below $1\mathrm{.}0.$ The company$$s debt ratio is still only $0\mathrm{.}27.$ Top management of United Cable and Entertainment is considering ways to improve the company$$s ratios, including the following possible transactions:

Selling off the cable television segment of the business for $$30$ million $($receiving half in cash and half in the form of a long$-$term note receivable$).$ The book value of the cable television business is $$27$ million.

Borrowing $$100$ million on long$-$term debt.

Purchasing treasury stock for $$500$ million cash.

Writing off one$-$fourth of the goodwill carried on the books at $$128$ million.

Selling advertising at the normal gross profit of $60\%.$ The advertisements run immediately.

Purchasing trademarks from NBC$,$ paying $$20$ million cash and signing a one$-$year note payable for $$80$ million.

Requirements

Top management wants to know the effects of these transactions $($increase$,$ decrease, or no effect$)$ on the following ratios of United Cable and Entertainment:

Current ratio

Debt ratio

Times$-$interest$-$earned ratio $($measured as $)$

Return on equity

Some of these transactions have an immediate positive effect on the company$$s financial condition. Some are negative. Other$)$