Question: LO 6 E3-30A. (Learning Objective 6: Analyze and evaluate liquidity and debt-paying ability) Peyton Company reported these ratios at December 31, 2021 (dollar amounts in

LO 6 E3-30A. (Learning Objective 6: Analyze and evaluate liquidity and

LO 6 E3-30A. (Learning Objective 6: Analyze and evaluate liquidity and debt-paying ability) Peyton Company reported these ratios at December 31, 2021 (dollar amounts in millions): Current ratio $20 = 2.00 $10 $40 Debt ratio 0.57 570 Peyton Company completed these transactions during 2022: a. Purchased equipment on account, $5 b. Paid long-term debt, $5 c. Collected cash from customers in advance, $4 d. Accrued interest expense, $3 e. Made cash sales, $7 Determine whether each transaction improved or hurt the company's current ratio and debt ratio

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