Chua Company Had a Current Ratio of 2 What Impact Will the Sale of Inventory to Customers for on December

Chua Company had a current ratio of 2.5 to 1 on December 31, 2017.On that date, the company's assets were as follows: $\begin{array}{lr}\text { Cash } & \$ 100,000 \\\text { Accounts receivable, net } & 600,000 \\\text { Inventory } & 960,000 \\\text { Prepaid expenses } & 25,000 \\\text { Equipment, net } & 2,200,000 \\\text { Total assets } & \$ 3,885,000 \\\end{array}$ What impact will the sale of inventory to customers for cash have on Chua's debt-to-equity ratio?

A) An increase in the debt-to-equity ratio
B) A decrease in the debt-to-equity ratio
C) No efffect on the debt-to-equity ratio
D) There is not enough information provided to determine the answer.