As of December 31, 2012, Grove Corporation Had a Current

Multiple Choice

As of December 31, 2012, Grove 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, 2012, Grove collected $5,200 of accounts receivable. As a result of this transaction, Grove's working capital will:

A) Increase.
B) Remain the same.
C) Decrease.
D) Cannot be determineD.The transaction will increase one current asset (cash) and decrease another current asset (accounts receivable) . Current assets do not change; therefore working capital will not change.