Next Page Page 42 of 53 Question 42 (3 points) Rullons Inc is planning to borrow $1,000,000 in short-term debt an increase in notes payable of $1,000,000) Rutions believes that these borrowed funds will have no effect on the sales or costs, and therefore no effect on net income If any changes resulting from this new policy will be offset by a corresponding and equal change in inventory, and it Rullons is correct that all also will remain constant, these changes will cause the firm's current ratio (assuming an initial current ratio of 14) to a) Increase b) Decrease c) No change d) There is not enough information provided to answer this