Marvel Inc.has $180,000 in current assets and $150,000 in current liabilities.When the company pays $35,000 owed to employees (salaries payable) , what effect does this have on their current ratio?

A) The ratio increases.
B) The ratio decreases.
C) The ratio stays the same.
D) Cannot be determined.

Current Assets

Items of value that are forecasted to be liquidated, traded, or depleted within the span of one year or throughout the duration of the operational cycle, whichever timeframe is greater.

Current Liabilities

Obligations that a company expects to pay within one year or within its normal operating cycle, whichever is longer, including accounts payable, short-term loans, and other accrued liabilities.

Current Ratio

A financial metric indicating a firm's capacity to settle short-term debts, determined by dividing current assets by current liabilities.