The Shippecasse Company had a Current Ratio of 1:2. The Company declared a $10,000 cash dividend to preferred shareholders and accrued a revenue of $7,500. What is the combined effect of these two transactions on the current ratio and total stockholders' equity, respective?

Select one:

a. Increase, Increase

b. Decrease, Decrease

c. Increase, Decrease

d. No Effect, Increase

e. Decrease, No Effect