Daley, Inc. is consistently profitable. Its financial relationships as of January 1, 20X1 were:

Current ratio	2 to 1
Long term debt divided by Total Assets	0.5

On February 1, 20X1, Daley issued $100,000 of long-term debt for cash. What is the effect on these ratios?

		Long-term debt divided by Total assets increases; current ratio decreases
		Long-term debt divided byTotal assets increases; current ratio increases
		Long-term debt divided by Total assets decreases; current ratio decreases
		Long-term debt divided by Total assets decreases; current ratio increases