Western Gas & Electric Companys Chief Financial Officer (CFO) has decided to take a closer look at the firms short-term assets and liabilities. WGECs balance sheet follows:

Western Gas & Electric Company (WGEC) Balance Sheet

Cash	$1,700,000		Accounts payable	$4,080,000
Accounts receivable	$5,950,000		Accruals	$2,550,000
Inventory	$9,350,000		Notes payable	$3,570,000
Total current assets	$17,000,000		Total current liabilities	$10,200,000
			Long-term debt	$15,300,000
			Total debt	$25,500,000
			Common equity	$5,100,000
Net plant and equipment	$25,500,000		Retained earnings	$11,900,000
			Total equity	$17,000,000
Total assets	$42,500,000		Total liabilities and equity	$42,500,000

1. The value of WGECs net working capital is A. 17000000 B 10200000 C. 6800000 D 42500000.

2. WGECs current ratio is A 4.17 B. 0.67 C. 0.24 D. 1.67

3. Assume that Western Gas & Electric Company decides to acquire an additional $2,125,000 in inventories and pay using its accounts payable. Given the condition of the company noted in the balance sheet, this activity should be expected to cause WGECs current ratio to A. Stay the same B. decrease C. Increase