How Will a Company's Working Capital and Current Ratio Be

How will a company's working capital and current ratio be affected by the recording of a cash dividend on the declaration date? (Assume the dividend is paid on a later date.) $\begin{array}{lll}& \text { Working Capital}& \text { Current Ratio}\\ \text { I. } & \text { decrease } & \text { decrease } \\\text { II. } & \text { decrease } & \text { no effect } \\\text { III. } & \text { no effect } & \text { no effect }\\\text { III. } & \text { no effect } & \text { decrease }\end{array}$

A) I
B) II
C) III
D) IV