44. (Analyzing liquidity) (Related to Checkpoint 4.1 on page 119) Apex Fabricating, Inc., manufactures fenders and other after-market body panels for older auto- mobiles. At the close of last year, the firm had $10,381,800 in current assets and $4,152,720 in current liabilities. The company's managers want to increase its inventory, which will be financed using short-term debt. How much can the firm increase its inventory, financing it with short-term borrowing, without its current ratio falling below 2.0 (assuming all other current assets and current liabilities remain constant)? 4-5. (Analyzing liquidity) Smyth Resort Pic has 2,000,000 in cash and a total of 600,000 of current assets. The firm's current ratio is 2.5 times. The management of Smyth Resort Plc now plans to buy new machinery worth 170,000. What will happen to the current ratio of Smyth Resort Ple if they use the cash balance to pay off the loan