Higgins Company presently has a current ratio of 0.6.It is currently negotiating a loan,but it has been informed it must improve its current ratio before the loan will be approved.Which of the following actions would improve its current ratio?
A) Pay off a portion of its long-term debt.
B) Use cash to pay off some current liabilities.
C) Purchase additional inventory on credit.
D) Collect some of the current accounts receivable.
Correct Answer:
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