LRCISES M9-1 Understanding Liquidity Which of the following will improve liquidity? 1. A company purchases a new truck with cash. 2. A company receives cash from taking out a long-term loan that is due in five years. 3. A company substantially increases credit sales and expects to collect all of the credit sales in the cur- rent account period. 4. A company purchases inventory on credit but is having trouble selling the inventory as most of it has 5. A company took out a long-term loan four years ago. The loan is due next month. M9-3 LO9-3 Computing Interest Expense Kieso Company borrowed $600,000 for three months. The annual interest rate on the loan was 11%. Kieso's fiscal year ends on December 31. Kieso borrowed the $600,000 one month prior to the end of its current fiscal year and paid the $600,000 plus interest back two months into its current fiscal year. year? At the end of its current fiscal year