TB MC Qu. 13-57 (Static) As of December 31, Year 1, Gant Corporation had...

As of December 31, Year 1, Gant Corporation had a current ratio of 1.29, quick ratio of 1.05, and working capital of $18,000. The company uses a perpetual inventory system and sells merchandise for more than it cost. On January 1, Year 2, Gant paid $3,600 on accounts payable. Which of the following statements is incorrect?

Multiple Choice:

A. Gant's quick ratio will increase and its current ratio will decrease.

B. Gant's quick ratio will increase.

C. Gant's working capital will remain the same.

D. Gant's current ratio will increase.