This problem demonstrates the effects of transactions on the current ratio and the debt ratio Hartford Company. Hartford's condensed and adapted balance sheet at December 31, 2016, follows: Assume that during the first quarter of the following year. 2017. Hanford completed the following transactions: Earned revenue. $2.5 million, on account. Borrowed $3.0 million on long-term debt. Paid half the current liabilities. Paid selling expense of $3.0 million. Accrued general expense of $0.9 million. Credit General Expense Payable, a current liability. Purchased equipment for $4.6 million, paying cash of $1.8 million, and signing a long-term note payable for $2.8 million. Recorded depreciation expense of $0.9 million. Compute Hartford's current ratio and debt ratio at December 31, 2016, Round to two decimal places. Consider each transaction separately. Compute Hanford's current ratio and debt ratio after each transaction during 2017 - that is. seven times. Round ratios to two decimal places. Based on your analysis, you should be able to readily identify the effects of certain transactions on the current ratio and the debt ratio. Test your understanding by completing these statements with cither "increase'' or "decrease": a. Revenues usually_____the current ratio. Revenues usually_____the debt ratio. Expenses usually_____the current ratio. d. Expenses usually the debt ratio. e. If a company's current ratio is greater than 1.0. as it is for Hartford, paying off a current liability will always_____the current ratio. f. Borrowing money on long-term debt w ill always_____the current ratio and the debt ratio