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The following balances are from the records of Ashdash Company at December $31,$ Year $1$:

Cash $$2,000,000$

Accounts receivables $($net$)5,000,000$

Trading securities $600,000$

Inventories $1,500,000$

Property, plant, and equipment $($net of depreciation$)2,500,000$

Goodwill $200,000$

Accounts payable $2,000,000$

Current maturities of noncurrent debt $100,000$

Noncurrent debt $1,000,000$

Common stock $600,000$

Additional paid$-$in capital $8,000,000$

Select from the option list provided the appropriate effect that the transaction had on each ratio or measurement. Assume each event is independent of the others. Each choice may be used once, more than once, or not at all.

Year $2$ transaction

Quick ratio

Working capital

Debt$-$to$-$equity ratio

$1.$ Accounts receivable were collected.

$2.$ Inventories were purchased on credit.

$3.$ Half the current maturities of noncurrent debt were retired on December $31,$ Year $2.$

$4.$ An unusual in nature event caused $$250,000$ worth of damage to the company's main building. Repairs were made by year$-$end and were paid for using a combination of cash and credit.

$5.$ An executive exercised share options that had been granted as compensation and had vested in prior years. The market price was significantly higher at the date of exercise than at the date of grant.

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