The current ratio is Select one: A. calculated by dividing current liabilities by current assets. B. used to evaluate a company's liquidity and short-term debt paying ability. C. used to evaluate a company's solvency and long-term debt paying ability. 0 D. calculated by subtracting current liabilities from current assets. O E. None of the above. Ned Company had $375,000 of current assets and $150,000 of current liabilities before borrowing $70,000 from the bank with a 3-month note payable. What effect did the borrowing transaction have on the amount of Ned Company's working capital? Select one: O A. No effect B. $70,000 increase 0 C. $140.000 increase D. $70,000 decrease 0 E. None of the above