1. Winchell Trading Corp. had net income of P2,000,000 in 2020. Using the 2020 financial elements as the base data, net income decreased by 70% in 2021 and increase by 175% by 2022. The respective net income reported by the company for 2021 and 2022 are ______, _______, respectively.
2. The following financial data have been taken form the records of Little Mix Company.

Accounts receivable P 200,000

Accounts payable 80,000

Bonds payable, due in 10 years 500,000

Cash 100,000

Interest payable, due in 3 months 25,000

Inventory 440,000

Land 800,000

Notes payable, due in 6 months 250,000

What will happen to the current and quick ratios, respectively, if Little Mix Company uses cash to pay 50% of its accounts payable?

a. Both ratios will increase

b. Both ratios will decrease

c. Only the current ratio will increase

d. Only the quick ratio will increase

Please answer with full solution and explanation thank you!