Data on Corporation A:

2010 2011 2012

Total Assets 100 110 120

Current Liabilities 10 10 10

Current Ratio 1 2 3

Quick Ratio 1 2 3

Cash Ratio .5 1.5 2.5

Debt/Equity Ratio 1 1.2 1.4

Assume current assets = cash, receivables and cash.

Based on the data, Corporation A has been able to increase its Current Ratio, Quick Ratio and Cash Ratio over a three year period. How was this corporation able to drive the numbers up?

It was able to ______________________ its __________________ and put it into _____________________.

1. Increase, long-term debt, cash
2. Increase, sales, receivables
3. Increase, long-term debt, inventory
4. Decrease, long-term debt, cash
5. Decrease, short-term debt, cash
6. Increase, net income, inventory