Fact Pattern: Calculation of ratios and the determination of other factors are considered important in analysis of financial statements. Prior to the independent events described below, the corporation concerned had current and quick ratios in excess of one to one and reported a net income (as opposed to a loss) for the period just ended. Income tax effects are to be ignored. The corporation had only one class of shares outstanding. Recording the payment (as distinguished from the declaration) of a cash dividend, the declaration of which was already recorded, will Increase both the current ratio and working capital. Increase the current ratio but have no effect on working capital. Decrease both the current ratio and working capital. Have no effect on the current ratio or earnings per share.