Assume a fiRm's Current Ratio Equals 3

Multiple Choice

Assume a firm's current ratio equals 3.1. Which of the following actions would increase it?

A) Discarding and writing off spoiled inventory.
B) Receiving a full cash payment on an account receivable.
C) Paying off a short-term bank loan with the proceeds from new long-term debt.
D) Purchasing new fixed assets using the proceeds from a new stock issue.
E) Buying inventory on credit, thereby increasing accounts payable.