B. Because this transaction increases current assets and current liabilities by the same amount, there is no change in the level of working capital.

C. Because the current ratio was greater than 1.0, this transaction will decrease the current ratio. See the correct answer for a complete explanation.

D. Because Depoole has a current ratio of greater than one (since total quick assets exceeded total current liabilities), the purchase of raw materials on account will decrease the current ratio. This is because the purchase of materials on account will increase both the current assets and the current liabilities by the same amount. Let us assume that Depoole had current assets of $150 and current liabilities of $100, giving a current ratio of 1.50. Now let assume that they purchased $50 of materials. This increased the current assets to $200, and the current liabilities to $150. Now, the ratio is 1.33, which is lower than it had been.