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[1) If a company has a current ratio of 4 to 1, and purchases inventory on credit, what will this do to its current ratio? A) Increase the current ratio. *B) Decrease the current ratio. C) Does not change the current ratio. D) Cannot be determined. 2) The Rocco Pet Store Company has working capital of $720,000 and a current ratio of 4 to 1. The amount of current assets is: *A) $960,000. B) $540,000. C) $810,000. D) $240,000. 3) Shown below are selected data from the balance sheet of Shira Liquidators, a Pawn Shop (dollar amounts are in thousands): Cash 85 Accounts receivable 200 Inventory 240 Total assets 900 Current liabilities 400 Noncurrent liabilities 375 What is the quick ratio? A) 1.5 to 1 B) 0.52 to 1 *C) 0.71 to 1 D) 0.82 to 1