General hospital has a current ratio of 0.5. Which of the following actions would improve (increase) this ratio? (Hint: Create a simple balance sheet that has a current ratio of 0.5. Then, judge how the transactions below would affect the balance sheet. )

1.Use cash to pay off current liabilities 2.Collect some of the current accounts receivable 3.Use cash to pay off some long term debt. 4 . Purchase additional inventory on credit (i.e., accounts payable). 5.Sell some of the existing inventory at cost (book value). b. Now assume that General Hospital has a current ratio of 1.2.In this situation which of the above actions would improve this ratio?

***Take a look at the scenario in End of Chapter problem 13.1.a on page 419 in your text. However instead of judging how the transactions would impact the balance sheet, pick one of the five options presented in that problem that you think could best improve the balance sheet current ratio above the 0.5 given in the problem. You must provide a rationale in support of your recommendation in order for your answer to count for credit.***