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

question 102

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 sold inventory on account for $6,000.Which of the following statements is not true?

• A)Gant's current ratio will decrease.
• B)Gant's quick ratio will increase.
• C)Gant's working capital will increase.
• D)None of these answers is correct.

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