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The firm's current liabilities equal $5,790,000 such that the firm's current ratio equals 1.9. The company's managers want to reduce the firm's cash holdings down
The firm's current liabilities equal $5,790,000 such that the firm's current ratio equals 1.9. The company's managers want to reduce the firm's cash holdings down to $1,010,000 by paying $550,000 in cash to expand the firm's truck fleet and using $1,590,000 in cash to retire a short-term note. If they carry this plan through, what will happen to the firm's current ratio?
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