(Liquidity Analysis) The King Carpet Company has $2,940,000 in cash and a total of $12,150,000 in current assets. The li

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(Liquidity Analysis) The King Carpet Company has $2,940,000 in cash and a total of $12,150,000 in current assets. The li

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(Liquidity Analysis) The King Carpet Company has $2,940,000 incash and a total of $12,150,000 in current assets. The limi'scunent liabilities equal $6,420,000 such that the firm's currentratio equals 1.9 The company's managers want to reduce the firm'scash holdings down to $1,030,000 by paying $569,000 in cash toexpand the firm's truck fleet and using $1,341,000 in cash toretire a short-term note. If they carry this plan through, whatwill happen to the firm's current ratio?
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