[The following information applies to the questions displayed below.) The following information is taken from the balance sheet of Menendez Company on January 1, Year 1: Current Assets Equipment Land Total Assets $ 12,000 Current Liabilities 52,000 Long-term Liabilities 36,000 Common Stock $ 100,000 Total Liab. & Equity $ 4,000 32,000 64,000 $ 100,000 Use the information on January 1, Year 1 to determine the effect of the following entry on the current ratio of Menendez Company: 2,000 Accounts payable Cash How will this transaction affect the current ratio? 2,000 It have no effect on the current ratio. It will cause the current ratio to decrease. It will cause the current ratio to increase It will potentially affect the current ratio, but the direction of the change cannot be determined without more information