Trect of Transactions on Debt-to-Equity Ratio The following account balances are taken from the records of Monet's Garden Inc.: Current liabilities Long-term abilities Stockholders' equity $150,000 375.000 400,000 Required: 1. Use the information provided to compute Monet's debt-to-equity ratio. Round to three decimal points. to 1 2. Determine the effect that each of the following transactions will have on Monet's debt-to-equity ratio by recalculating the ratio and then indicating whether the ratio is increased, decreased, or not affected by the transaction Round to three decimal points. Consider each transaction independently; that, assume that it is the only transaction that takes place Transactions Ratio on Ratio a. Purchased inventory on account, $20,000 increase b. Purchased inventory for cash, $15,000 none c. Paid suppliers on account, $30,000 decrease d. Received cash on account, $40,000 none e. Paid insurance for next year, $20,000 none f. Made sales on account, $60,000 decrease g. Repaid short-term loans at bank, $25,000 decrease h. Borrowed $40,000 at bank for 90 days increase 1. Declared and paid $45,000 cash dividend Increase 1. Purchased $20,000 of short-term investments none k. Paid $30,000 in salaries increase 1. Accrued additional $15,000 in taxes Increase