As of December 31, Year 1, Gant Corporation had a current ratio of 1.29, quick ratio of 1.05, and working capital of $29,000. The company uses a perpetual inventory system and sells merchandise for more than it cost. On January 1, Year 2, Gant paid $250 for transportation in cost on merchandise it had received. Which of the following statements is incorrect?

Multiple Choice

• A)

Gant's current ratio will remain the same

• B)

Gant's quick ratio will increase

• C)

Gant's working capital will remain the same

• D)

Gant's quick ratio will increase and its current ratio will remain the same.