Alpha Enterprise Has Total Current Assets of $2,000,000 and Total

Multiple Choice

Alpha Enterprise has total current assets of $2,000,000 and total current liabilities of $800,000.If the company purchases $100,000 of inventory on account,while none of its other assets and liabilities change,its current ratio will ________.

A) increase
B) decrease
C) stay the same
D) The answer cannot be determined from the information given.