Merchandise inventory costing \(\$ 30,000\) is purchased on account. Indicate the effect (increase, decrease, no effect) of this transaction on (1) working capital and (2) the current ratio, assuming that current assets and current liabilities immediately prior to the transaction were as follows:

a Current assets, \(\$ 120,000\); current liabilities, \(\$ 120,000\)

b Current assets, \(\$ 120,000\); current liabilities, \(\$ 150,000\).

c Current assets, \(\$ 120,000\); current liabilities, \(\$ 80,000\).