please explain how to get increase or decrease beside the equation, i want to know why it increases or decreases or no effect.

E 3-20 Emoct of management decisions on ratios LO3-8 Most decisions made by management impact the ratios analysts use to evaluate performance Indicate (by letter) whether each of the actions listed below will immediately increase (1) decrease (D). or have no effect (N) on the ratios shown. Assume cach ratio is less than 1.0 before the action is taken Page 10 Current Ratio Acid Test Rate Debt to Equity Ratio L ance of long term bonds 2 luce orthocker 3. Payment of counts payable 4. Purchase of investory on scout . Purchase of m y fath Purchase of one with you 7. Rupement of long term notes payable ance of stock 9. Poment for der 10. Purchase of horr e n 11. Recitation of long-term E 3-21 Segment reporting Appendix 3 ment impact the ratios analysts use to evaluate performance. Indicate (by letter) whether each of the actions listed below will immedia - Assume each ratio is less than 1.0 before the action is taken. Action Current Ratio Acid-Test Ratio Debt to Equity Ratio 1. Issuance of long-term bonds 2. Issuance of short-term notes 3. Payment of accounts payable 4. Purchase of inventory on account 5. Purchase of inventory for cash 6. Purchase of equipment with a 4-year note 7. Repayment of long-term notes payable ||||||| IIIIIII!! 8. Issuance of common stock ||||||| 9. Payment for advertising expense 10. Purchase of short-term investment for cash II. Reclassification of long-term notes payable to current notes payable sin four distinct business segments. The segments, along with 2021 information on revenues, assets, and net income, are listed below