If a Company Has a Current Ratio of 1

Short Answer

If a company has a current ratio of 1.2:1, what respective effects will the borrowing of cash by short-term debt and collection of accounts receivable have on the ratio? $\begin{array}{lc}&\text { Short-term Borrowing } & \text { Collection of Receivables } \\\hline a.& \text { Increase } & \text { No effect } \\b.&\text { Increase } & \text { Increase } \\c.&\text { Decrease } & \text { No effect } \\d.&\text { Decrease } & \text { Decrease }\end{array}$