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The King Carpet Company has $ 2 , 8 5 0 , 0 0 0 in cash and a total of $ 1 1 5

The King Carpet Company has $2,850,000 in cash and a total of $ 11510000 in current assets. The firm's current liabilities equal $ 5000000 such that the firm's current ratio equals 2.3. The company's managers want to reduce the firm's cash holdings down to $ 1,061000 by paying $589,000 in cash to expand the firm's truck fleet and using $ 1,061,000 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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