The following information is taken from the balance sheet of Menendez Company on January 1, Year 1: Current Assets Equipment Land Total Assets $20,000 Current Liabilities 40,000 Long-term Liabilities 32,000 Common Stock $92,000 Total Liab. & Equity $ 9,000 30,000 53,000 $92,000 On January 2, Year 1, the company earned revenue on account of $24.100. How will this transaction affect the current ratio? ultiple Choice It will decrease the current ratio to 1:1. It will increase the current ratio to 4.9:1. It will increase the current ratio to 2.2:1. It will have no effect on the current ratio. thing The December 31, Year 1, balance sheet of Rowan Company shows current assets of $30,000 and current liabilities of $16,000. On January Year 2, the company had the following two transactions: 1) Issued common stock for $8,400 cash 2) Received a $3,600 cash payment for its accounts receivable After the two transactions are recorded, what is the company's current ratio? Multiple 2 to 1 1.9 to 1 2.6 to 1 2 4 to 1