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Magenta Ltd has a current ratio of 1.5, a quick ratio of 0.4 and a positive cash balance. If it purchases inventory on credit, what

Magenta Ltd has a current ratio of 1.5, a quick ratio of 0.4 and a positive cash balance. If it purchases inventory on credit, what is the effect on these ratios?

a. Current ratio( Decrease) Quick Ratio( Decrease)

b. Current Ratio( Increase) Quick Ratio( Decrease)

c. Current Ratio (Increase) Quick Ratio(Increase)

d. Current Ratio( Decrease) Quick Ratio( Increase)

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