The company earns 5 percent on current assets and 15 percent on fixed assets. The firm's current liabilities cost 7 percent to maintain and the average annual cost of long-term funds is 20 percent. The firm would like to increase its current ratio. This goal would be accomplished most profitably by ________. (See Table 15.2)

Select one:

A.

increasing accounts payable

B.

increasing accounts receivable

C.

decreasing cash and cash equivalents

D.

decreasing inventory