In the last quarter, the financial-analysis report for XYZ Company revealed that the current, quick, and equity ratios were 1.9, 0.8, and 0.37, respectively. In order to improve the firms financial health based on these financial ratios, the following strategies are being considered by XYZ for the current quarter: (i) Reduce inventory (ii) Pay back short-term loans (iii) Increase retained earnings (a) Which strategy (or strategies) is effective for improving each of the three financial ratios? (b) If only one strategy is considered by XYZ, which would likely be most effective? Assume no other information is available for the analysis.