Multiple Choice
Garza, Inc. and Marx, Inc. each had the same financial position on 1/1/13. The following is a summary of each of their balance sheets as of 1/1/13: 
Garza is about to raise $200,000 in cash by issuing bonds. Marx 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) Garza's current ratio will be higher than Marx's.
B) Garza's current ratio will be lower than Marx's.
C) Garza's debt to asset ratio will be higher than Marx's.
D) Garza's debt to asset ratio will be lower than Marx's.
Correct Answer:
Verified
Correct Answer:
Verified
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