A corporation has $80 million in current assets comprised of $30 million in inventory and $50 million in cash and marketable securities it has current liabilities of $50 million. If the corporation purchases an additional $10 million in inventory with trade credit this would

A corporation has $80 million in current assets comprised of $30 million in inventory and $50 million in cash and marketable securities it has current liabilities of $50 million. If the corporation purchases an additional $10 million in inventory with trade credit this would
A . increase its current ratio and increase its quick ratio
B. not change its current ratio and decrease its quick ratio
C. not change its current ratio and not change its quick ratio
D. decrease its current ratio and decrease its quick ratio

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Answer: D