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Husky, Inc. has the following financial statement information for the years ending December 31, 2018 and 2017. (Dollar amounts are in millions of dollars). 2018

Husky, Inc. has the following financial statement information for the years ending December 31, 2018 and 2017. (Dollar amounts are in millions of dollars).

2018 2017

Cash $ 1,880 $ 2,087

Accounts receivable, net 2,450 2,496

Inventories 7,378 6,789

Other current assets 214 677

Total current assets $ 11,922 $12,049

Accounts payable $ 4,585 $ 4,308

Other current liabilities 2,848 2,461

Total current liabilities $ 7,433 $ 6,769

The financial statement also includes the following note pertaining to inventories.

Inventories are valued on a lower of last-in, first-out (LIFO) cost or market basis. At December 31, 2018 and 2017, inventories would have been greater by $1,379 million and $1,239 million, respectively, if they had been valued on a lower of first-in, first-out (FIFO) cost or market basis. Inventory includes product costs, inbound freight, warehousing costs, and vendor allowances.

How would the company's 2018 current ratio change if the company had used FIFO rather than LIFO?

a.

The company's current ratio would increase by 13.2%.

b.

The company's current ratio would increase by 11.6%.

c.

The company's current ratio would increase by 12.6%.

d.

The company's current ratio would increase by 10.7%.

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