Notes Problems Problem 3 Most decisions made by management impact the ratios analysts use to evaluate. Indicate (by letter) whether each of the actions listed below will immediately increase (I), decrease (D), or have no effect (N) on the ratios shown. Assume each ratio is less than 1.0 before the action is taken. Action Current Acid-Test | Debt-to- Ratio | Ratio Equity Issuance of long-term bonds Issuance of short-term notes Payment of accounts payable Purchase of inventory on account Purchase of inventory for cash