Gates, Inc. and Markham, Inc. each had the same financial position on January 1, 2016. The following is a summary of each of their balance sheets as of January 1, 2016:

Current assets $ 330,000

Non-current assets 2,970,000

Current liabilities 165,000

Non-current liabilities 1,815,000

Common stock 907,500

Retained earnings 412,500

Gates is about to raise $200,000 in cash by issuing bonds. Markham is going to raise $200,000 on the same day by issuing common stock. Immediately after these transactions, which of the following statements will be correct?

a. Gates's current ratio will be higher than Markham's.

b. Gates's current ratio will be lower than Markham's.

c. Gates's debt to asset ratio will be higher than Markham's.

d. Gates's debt to asset ratio will be lower than Markham's.