Country Manufacturing, Inc. just purchased a new 3D printer. This machine will allow the company to produce its product in half the time that it took before. The main benefit of the new machine is that it will allow Country Manufacturing, Inc. to cut its average inventory level in half (and thereby significantly decrease the average level of inventory). Otherwise, the new manufacturing system is expected to have NO effect on costs, NO effect on sales and thus, NO impact on net income.

If any asset change(s) resulting from this new policy will be offset by a corresponding and equal change in short-term debt (i.e., notes payable), all else equal, this new policy should cause the firm'scurrent ratio (assuming that the currentquick ratioprior to this change was equal to 1.4) to:

Question 50 options:

Increase

Decrease

No change