Would transaction increase or decrease the current ratio

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A company's current assets are $150 and its’ current liabilities are $100. If the company uses cash to retire notes payable due within one year, would this transaction increase or decrease the current ratio and return on assets ratio?

A) Current Ratio: Increase; Return on Assets: Increase

B) Current Ratio: Increase; Return on Assets: Decrease

C) Current Ratio: Decrease; Return on Assets: Increase

D) Current Ratio: Decrease; Return on Assets: Decrease

Reference no: EM131129651

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