(Liquidity Analysis)The King Carpet Company has

$3,130,000

in cash and a total of

$12,770,000

in current assets. The firm's current liabilities equal

$6,550,000

such that the firm's current ratio equals

1.9.

The company's managers want to reduce the firm's cash holdings down to

$1,170,000

by paying

$597,000

in cash to expand the firm's truck fleet and using

$1,363,000

in cash to retire a short-term note. If they carry this plan through, what will happen to the firm's current ratio?

Question content area bottom

Part 1

The new current ratio is

enter your response here.

(Round to one decimal place.)