Curry, Inc. is planning to relax its credit terms. This will increase the company’s accounts receivable balance.To finan

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Curry, Inc. is planning to relax its credit terms. This
will increase the company’s accounts receivable balance.To finance
this increase, Curry, Inc. will increase its short-term loans
(i.e., increase notes payable). Curry, Inc. believes that this
event will have no affect on either sales or costs, and therefore
no affect on net income. All else constant, this new policy should
cause the firm’s current ratio (assuming a current ratio of 1.7)
to:
Increase
Decrease
No Change
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