As of December 31, Year 1, Gant Corporation had a current ratio of 1.29, quick ratio of 1.05, and working capital of $18,000. The company uses a perpetual inventory system and sells merchandise for more than it cost. On January 1, Year 2, Gant sold inventory on account for $6,000. Which of the following statements is incorrect?
A. Gant's working capital will increase.
B. Gant's current ratio will decrease.
C. Gant's quick ratio will increase.
D. None of these answers are correct.
Answer: C
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Fill in the blank(s) with the appropriate word(s).
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