You are provided with the following transactions that took place during the year.

Instructions
For each transaction listed above, indicate whether it will increase (I), decrease (D), or have no effect (NE) on theratios.

Transcribed Image Text:

Current Cash Debt Coverage Ratio ($125,000) (0.5 times) (0.3 times) Cash Debt Coverage Ratio Free Cash Flow Transactions (a) Recorded credit sales $2,500 (b) Collected $1,500 owing from customers. (c) Paid amount owing to suppliers $2,750 (d) Rccorded sales returns of $500 and credited the customer's account (e) Purchased new equipment $5,000 signed a long-term note payable for the cost of the cquipment. (f) Purchased a patent and paid $15,000 cash for the asset.