CPZ Enterprises had the following account information.

Accounts receivable

$$200,000$

Accounts payable

$80,000$

Bonds payable, due in $10$ years

$300,000$

Cash

$100,000$

Interest payable, due in $3$ months

$10,000$

Inventory

$400,000$

Land

$250,000$

Notes payable, due in $6$ months

$50,000$

Prepaid expenses

$40,000$

The company has an operating cycle of $5$ months.

What will happen to the ratios below if CPZ Enterprises uses cash to pay $50\%$ of the accounts payable?

Current Ratio

Quick Ratio

Current Ratio

Increase

Quick Ratio

Increase

Current Ratio

Decrease

Quick Ratio

Decrease

Current Ratio

Increase

Quick Ratio

Decrease

Current Ratio

Decrease

Quick Ratio

Increase