A firm has a current ratio of 1; in order to improve its liquidity ratios, this firm might ________.

improve its collection practices by providing extended credit policy

B

improve its collection practices and pay accounts payable, thereby decreasing current liabilities and decreasing the current and quick ratios.

C

decrease current liabilities by utilizing more long-term debt, thereby increasing the current and quick ratios.

D

increase inventory, thereby increasing current assets and the current and quick ratios.