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Assume that current assets =$300,000 and that current liabilities =$100,000.Ifan account payable of $50,000 were...

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Accounting

Assume that current assets =$300,000 and that current liabilities =$100,000.Ifan account payable of $50,000 were paid off, what would be the impact on the
firm's working capital and current ratio?
Working capital would decrease from $200,000to $150,000, and the current ratio would decrease from 3.0to2.5.
Working capital would decrease from $200,000to $150,000, and the current ratio would increase from 3.0to5.0.
Working capital would remain $200,000, but the current ratio would increase from 3.0to5.0.
Working capital would remain $300,000, but the current ratio would increase from 3.0to5.0.
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