The Shippecasse Company had a Current Ratio of 1:2. The Company paid a $10,000 cash dividend to preferred shareholders that was previously declared. What is the effect of the payment journal entry on the current ratio and total stockholders' equity, respectively?

Select one:

a.Increase, Increase

b.Decrease, Decrease

c.Increase, No Effect

d.No Effect, Increase

e.Decrease, No Effect