Indicate Whether Each of the Actions Listed Below Will Immediately

question 35

Essay

Indicate whether each of the actions listed below will immediately increase (I), decrease (D), or have no effect (N) on the ratios shown. Assume each ratio is greater than 1.0 before the action is taken.
- $\begin{array}{lccc} & \text { Current ratio } & \text { Acid-test ratio } & \text { Total debt-to-equity ratio } \\\text { Refinancing currently-maturing debt }\\\text { for five more years }\end{array}$