Which One of the Following Transactions Will Increase the Liquidity

Multiple Choice

Which one of the following transactions will increase the liquidity of a firm?

A) using cash to purchase new equipment
B) increasing short-term debt while decreasing long-term debt by an equivalent amount
C) issuing long-term debt to repurchase shares of outstanding stock
D) increasing the sales on credit while reducing cash sales by the same amount
E) selling inventory on credit