As of December 31, Year 1, Gant Corporation Had a Current

Multiple Choice

As of December 31, Year 1, Gant Corporation had a current ratio of 1.29, quick ratio of 1.05, and working capital of $18,000. The company uses a perpetual inventory system and sells merchandise for more than it cost. On January 1, Year 2, Gant recorded the sale of inventory. As a result of this transaction, Gant's quick ratio will:

A) Decrease.
B) Increase.
C) Remain the same.
D) Cannot be determined.