A Firm Has $600,000 in Current Assets and $150,000 in Current

Multiple Choice

A firm has $600,000 in current assets and $150,000 in current liabilities.Which of the following is correct if they use cash to pay off $50,000 in accounts payable?

A) Current ratio will increase to 5.0.
B) Net working capital will increase to $500,000
C) Current ratio will decrease
D) Net working capital will not change