Expert Answer :ndividual transactions often have a significant im

Solved by verified expert :Individual transactions often have a significant impact on ratios. This problem will consider the direction of such an impact.TotalCurrentAssetsTotalCurrentLiabilitiesNetWorkingCapitalCurrentRatioa. Cash is acquired through issuance of additionalcommon stock.____________________________b. Merchandise is sold for cash. (Assume a profit.)____________________________c. A fixed asset is sold for more than book value.____________________________d. Payment is made to trade creditors for previouspurchases.____________________________e. A cash dividend is declared and paid.____________________________f. A stock dividend is declared and paid.____________________________g. Cash is obtained through long-term bank loans.____________________________h. A profitable firm increases its fixed assets depreciation allowance account.____________________________i. Current operating expenses are paid.____________________________j. Ten-year notes are issued topay off accounts payable.____________________________k. Accounts receivable are collected.____________________________l. Equipment is purchased with short-term notes.____________________________m. Merchandise is purchased on credit.____________________________n. The estimated taxes payable are increased.____________________________o. Marketable securities are sold below cost.____________________________Required Indicate the effects of the transactions listed above on each of the following: total current assets, total current liabilities, net working capital, and current ratio. Use ??to indicate an increase, -?to indicate a decrease, and 0 to indicate no effect. Assume an initial current ratio of more than 1 to 1.