A. Currently, the current ratio is .8. This transaction would increase current liabilities to $600,000 and current assets would remain unchanged. After this, the current ratio would be .667, a decrease from what it was before this transaction, not an increase.

B. This transaction would have no impact on the current ratio because all that is happening is the current asset of accounts receivable is being converted into the current asset of cash.

C. Currently, the current ratio is .8. This transaction would decrease current assets to $300,000 and current liabilities to $400,000. After this, the current ratio would be .75, a decrease from what it was before this transaction, not an increase.

D. Currently, the current ratio is .8. This transaction would increase current assets to $500,000 and current liabilities to $600,000. After this, the current ratio would be .833, an increase over what it was before this transaction.