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Taco Bell's current ratio is three times that of McDonald. Each firm plans to double its current liabilities by adding short-term notes payable and placing

Taco Bell's current ratio is three times that of McDonald. Each firm plans to double its current liabilities by adding short-term notes payable and placing the funds obtained in the cash. If Taco Bell's current ratio is 1.5 and McDonalds is one third of that, which of the statements below best describes the actual results of the borrowing?

a. There is no effect on the current ratios.

b. The current ratios of both firms increases.

c. The current ratios of both firms decreases.

d. Only McDonalds' current ratio increases.

e. Only Taco Bell's current ratio increases.

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