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Smyth Resort Ple has 2 , 0 0 0 , 0 0 0 in cash and a total of 6 0 0 , 0 0

Smyth Resort Ple has

2, 000, 000

in cash and a total of

600, 000

of current assets, The firm's current ratio is

2.5

times. The management of Smyth Resort Plc now plans to buy new machinery worth

170, 000,

What will happen to the current ratio of Smyth Resort Ple if they use the cash balance to pay off the loan?

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