If you pay off notes payable $($short$-$term bank loan$)$ with long$-$term debt $($i$.$e$.,$ you sell bonds to pay off notes payable$)($assume that the current ratio $($CA$/$CL$)$ is greater than $1\mathrm{.}0)$:

the current ratio will increase and net income will be unaffected.

the current ratio will increase and net income will increase.

the current ratio will decrease and net income will decrease.

the current ratio will decrease and net income will be unaffected.