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Part $1$

$($Liquidity Analysis$)$The King Carpet Company has $ $2$ comma $990$ comma $000$ in cash and a total of $ $12$ comma $170$ comma $000$ in current assets. The$$ firm's current liabilities equal $ $5$ comma $370$ comma $000$ such that the$$ firm's current ratio equals $2\mathrm{.}3.$ The$$ company's managers want to reduce the$$ firm's cash holdings down to $ $1$ comma $110$ comma $000$ by paying $ $518$ comma $000$ in cash to expand the$$ firm's truck fleet and using $ $1$ comma $362$ comma $000$ in cash to retire a$$ short$-$term note. If they carry this plan$$ through, what will happen to the$$ firm's current$$ ratio?