(Liquidity Analysis)The King Carpet Company has

$2,800,000

in cash and a total of

$12,670,000

in current assets. The firm's current liabilities equal

$5,090,000

such that the firm's current ratio equals

2.5.

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

$1,150,000

by paying

$539,000

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

$1,111,000

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.)