Indicate whether the following independent transactions increase, decrease or does not effect the net income, the amount of working capital and the operating cash. Prior to the transaction, both the current ratio is greater than 1.

Problem 4-1

Sold inventory for $10,000 that cost $4,000 on account.

Working Capital: [ Select ] ["Increase", "Decrease", "Does Not Effect"]

Current Ratio: [ Select ] ["Increase", "Decrease", "Does Not Effect"]

Operating Income: [ Select ] ["Increase", "Decrease", "Does Not Effect"]