For Each Transaction Numbered 1 Through 4 Below, Identify Which $\quad$

For each transaction numbered 1 through 4 below, identify which effect (a through g) would most likely occur as a result of the transaction.
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ Effects
a. Increase in current ratio and earnings per share
b. Decreases current ratio; increases earnings per share
c. Increases current ratio; does NOT change earnings per share
d. Decrease in current ratio and earnings per share
e. Decreases current ratio; does NOT change earnings per share
f. Does not change the current ratio or earnings per share
g. Can't determine the direction of changes in the current ratio

_____ 1. A passive investment in equity securities are purchased for $1,000 cash.
_____ 2. The securities that cost $1,000 have a yearend market value of $800.
_____ 3. The securities that cost $1,000 have a yearend market value of $1,200.
_____ 4. The securities that cost $1,000 and have a current balance sheet value of $800 are sold for $900.