1 - A company with $70,000 in current assets and $50,000 in current liabilities pays a $1,000 current liability. As a result of this transaction, the current ratio and working capital will

a.both increase

b.increase and remain the same, respectively

c.remain the same and decrease, respectively

d.both decrease

2 -

The following items are reported on a company's balance sheet:

Cash	$278,600
Marketable securities	109,900
Accounts receivable	253,700
Inventory	184,900
Accounts payable	297,900

Round your answers to two decimal places.

a. Determine the current ratio.

b. Determine the quick ratio.