The Bozeman Company had current assets of $400 and current liabilities of $500 prior to the following transactions:

1. Declaration of a cash dividend, $80

2. Service performed on credit, $80

The combined effect of these two transactions will cause what effect on Working Capital and the Working Capital Ratio, respectively?

Select one:

a.

No Effect, Decrease

b.

No Effect, No Effect

c.

Decrease, Decrease

d.

No Effect, Increase

e.

Decrease, Increase