Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions
The following information is taken from the balance sheet of Menendez Company on January 1,2016:

-Use the information on January 1,2016 to determine the effect of the following entry on the current ratio of Menendez Company:
This transaction will

A) have no effect on the current ratio.
B) cause the current ratio to increase.
C) cause the current ratio to decrease.
D) potentially affect the current ratio,but the direction of the change cannot be determined without more information.