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TealCap Manufacturing, Inc. is planning to increase its average inventory balance by taking out a short - term loan ( i . e . ,

TealCap Manufacturing, Inc. is planning to increase its average inventory balance by taking out a short-term loan (i.e., increase notes payable) and buying additional inventory. The company believes that this event will have no effect on either sales or costs, and therefore no effect on net income.
All else constant, this new policy should cause the firm's quick ratio (assuming an initial quick ratio of 0.7) to:
Increase
Decrease
No Change
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