Winsome Company borrowed money from one of its major customers, Quirky, two years ago. The current bal- ance of the liability is \($100.000\) (Winsome's only liability), and the current balance of the accounts receivable that Quirky owes Winsome is \($20,000.\) The total equity of Winsome is now \($400,000.\) Winsome wants to offset the liability with the receivable and report a net liability in the financial statements. Will this proposal of Winsome, if carried out, have any effect on the debt-to-equity ratio of Winsome?

a. No.

b. Yes, it will decrease the debt to equity ratio of Winsome. 

c. Yes, it will increase the debt to equity ratio of Winsome.

d. Yes, and Winsome's proposal is appropriate under GAAP