Refer to M2-23. Evaluate whether the current ratio of Robust Ribs Restaurant will increase or decrease as a result of the following transactions. 

Data From  M2-23

The balance sheet of Robust Ribs Restaurant reports current assets of $30,000 and current liabilities of $15,000. Calculate and interpret the current ratio. Does it appear likely that Robust Ribs will be able to pay its current liabilities as they come due in the next year?

a. Paid $2,000 cash for a new oven 

b. Borrowed $5,000 cash from a bank, issuing a note that must be repaid in three years

c. Received a $2,000 cash contribution from the company’s main shareholder

d. Purchased $500 of napkins, paper cups, and other disposable supplies on account