Return on equity (ROE) is measured by Profit / Average total equity Assume ROE is less than 100% and that the cash balance remains positive. State the effect the following event occurring on the reporting date would have on this ratio. EVENT: The credit purchase of inventory Asset turnover (ATO) is measured by Revenue / Average total assets. Assume ATO is currently 1.5 times p.a. and that the cash balance remains positive. State the effect the following event occurring on the reporting date would have on this ratio. EVENT: The credit purchase of inventory The Quick ratio is measured by (Cash + Receivables) / Current liabilities. Assume this ratio is currently 80% (or 0.8:1 ) and that the cash balance remains positive at all times. State the effect the following event occurring on the reporting date would have on this ratio. EVENT: The repayment of principal on an interest-only loan The Interest coverage ratio is measured by Earnings before interest and tax / Finance costs. State the effect the following event occurring on the reporting date would have on this ratio. EVENT: Recognising a gain from the cash sale of a non-current asset Cash flow per share is measured by Net operating cash flow / Weighted average number of shares on issue. State the effect the following event occurring on the reporting date would have on this ratio. EVENT: The repayment of principal on an interest-only loan Return on equity (ROE) is measured by Profit / Average total equity Assume ROE is less than 100% and that the cash balance remains positive. State the effect the following event occurring on the reporting date would have on this ratio. EVENT: The credit purchase of inventory Asset turnover (ATO) is measured by Revenue / Average total assets. Assume ATO is currently 1.5 times p.a. and that the cash balance remains positive. State the effect the following event occurring on the reporting date would have on this ratio. EVENT: The credit purchase of inventory The Quick ratio is measured by (Cash + Receivables) / Current liabilities. Assume this ratio is currently 80% (or 0.8:1 ) and that the cash balance remains positive at all times. State the effect the following event occurring on the reporting date would have on this ratio. EVENT: The repayment of principal on an interest-only loan The Interest coverage ratio is measured by Earnings before interest and tax / Finance costs. State the effect the following event occurring on the reporting date would have on this ratio. EVENT: Recognising a gain from the cash sale of a non-current asset Cash flow per share is measured by Net operating cash flow / Weighted average number of shares on issue. State the effect the following event occurring on the reporting date would have on this ratio. EVENT: The repayment of principal on an interest-only loan