Victoria Enterprises has $1.6 million of accounts receivable. The company's DSO is 40, its current assets are $2.5 million, and its current ratio is 1.5. The company plans to reduce its DSO to the industry average of 30 without causing a decline in sales. The freed-up cash will be used to reduce current liabilities. If the company succeeds, what will Victoria's new current ratio be?

1.50

1.97

1.26

0.72

1.66