Curry, Inc. is planning to relax its credit terms. This will increase the companys accounts receivable balance.To finance this increase, Curry, Inc. will increase its short-term loans (i.e., increase notes payable). Curry, Inc. believes that this event will have no affect on either sales or costs, and therefore no affect on net income. All else constant, this new policy should cause the firms current ratio (assuming a current ratio of 1.7) to:

1. Increase

2. Decrease

3. No Change

4. Not enough information is provided to answer this question.