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he King Carpet Company has $ 2 , 8 8 0 , 0 0 0 in cash and a total of $ 1 1 ,

he King Carpet Company has $ 2,880,000 in cash and a total of $ 11,950,000 in current assets. The firm's current liabilities equal $ 5,660,000 such that the firm's current ratio equals 2.1. The company's managers want to reduce the firm's cash holdings down to $ 1,000,000 by paying $ 555,000 in cash to expand the firm's truck fleet and using $1,325,000 in cash to retire a short-term note. If they carry this plan through, what will happen to the firm's current ratio?

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