The following information is taken from the balance sheet of Menendez Company on January 1, Year 1: Current Assets Equipment Total Assets Land $ 6,000 24,000 $ 14,000 Current Liabilities 34,000 Long-term Liabilities $ 74,000 Total Liabilities & Equity $ 74,000 26,000 Common Stock 44,000 On January 2, Year 1, the company earned revenue on account of $19,600. How will this transaction affect the current ratio? Multiple Choice It will increase the current ratio to 2.3:1. It will have no effect on the current ratio. It will decrease the current ratio to 1:1. It will increase the current ratio to 5.6:1