When firms enter into loan agreements with their$$ bank, it is very common for the agreement to have a restriction on the minimum current ratio the firm has to maintain. $$ So$,$ it is important that the firm be aware of the effects of their decisions on the current ratio. Consider the situation of Advanced Autoparts$($AAP$)$ in $2009.$ The firm had total current assets of $ $1,777,391,200$ and current liabilities of $ $1,367,224,000.$

a$.$What is the$$ firm's current$$ ratio?

b$.$If the firm were to expand its investment in inventory and finance the expansion by increasing accounts$$ payable, how much could it increase its inventory without reducing the current ratio below $1\mathrm{.}2?$

c$.$If the company needed to raise its current ratio to $1\mathrm{.}5$ by reducing its investment in current assets and simultaneously reducing accounts payable and$$ short$-$term debt, how much would it have to reduce current assets to accomplish this$$ goal?