Question: 32. June Smith, a process engineer, has sold her 15-year patent for a new etching process to Silica Labs, Inc. In return, she has

32. June Smith, a process engineer, has sold her 15-year patent for

32. June Smith, a process engineer, has sold her 15-year patent for a new etching process to Silica Labs, Inc. In return, she has received $500,000 in cash and, based on its value on the sale date, $200,000 in common stock in Silica Labs. The stock is forecasted to double in market value over the next two months. Assuming that Silica Labs holds some long-term debt, which of the following describes the effect of the transaction on Silica Labs? Current ratio will decrease and total debt to equity ratio will increase Current ratio will increase and total debt to equity ratio will decrease Current ratio will increase and total debt to equity ratio will increase Current ratio will decrease and total debt to equity ratio will decrease

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