"The King Carpet Company has $ 3 comma 000 comma 000 in cash and a total of $ 12 comma 000 comma 000 in current assets. The firm's current liabilities equal $ 6 comma 000 comma 000 such that the firm's current ratio equals 2.0. The company's managers want to reduce the firm's cash holdings down to $ 1 comma 000 comma 000 by paying $ 500 comma 000 in cash to expand the firm's truck fleet and using $ 1 comma 500 comma 000 in cash to retire a short-term note. If they carry this plan through, what will happen to the firm's current ratio?"

Afirm wants to strengthen its financial position. which of the following actions would increase its current ratio? a. reduce the company's days' sales outstanding to the industry average and use the resulting cash savings to purchase plant and equipment.b. use cash to repurchase some of the company's own stock.c. borrow using short-term debt and use the proceeds to repay debt that has a maturity of more than one year.d. issue new stock, then use some of the proceeds to purchase additional inventory and hold the remainder as cash.e. use cash to increase inventory holdings.