Which of the following would increase a company's current ratio (note: assume that the company's current ratio is presently equal to 2.0)? Choose ALL that apply (this is an all or nothing question - you must correctly
choose all correct answers to receive any credit for this question).
a. Increase notes payable (i.e., borrow short term) to finance additional fixed assets.
b. Issue long-term debt to buy inventory.
c. Sell common stock to pay off the company's notes payable balance.
d. Sell fixed assets to reduce accounts payable. e. Implement a "just-in-time" inventory policy that reduces the company's average inventory balance by 50
percent. The reduction in inventory will be matched with an equal decrease in accounts payable. f. An increase in annual sales that increases the company's accounts receivable balance. This increase in
accounts receivable will be matched by an equal increase in notes payable.