Which of the Following Actions Can a Firm Take to Increase

Multiple Choice

Which of the following actions can a firm take to increase its current ratio?

A) Issue short-term debt and use the proceeds to buy back long-term debt with a maturity of more than one year.
B) Reduce the company's days sales outstanding to the industry average and use the resulting cash savings to purchase plant and equipment.
C) Use cash to purchase additional inventory.
D) Statements a and b are correct.
E) None of the statements above is correct.