You work for ABC Bank and are reviewing the financial statements for one of the banks customers under the terms of the line of credit facility. The credit facility requires the customer to maintain a minimum current ratio of 1.5. During the year, the customers current ratio increased from 1.5 to 1.8, so you have asked the customer to explain the reason for this change. Which of the following is the most plausible explanation for this result?

	1.	The company repurchased some of its own stock this year
	2.	The company incurred a loss this year
	3.	The company refinanced a mortgage two years before it came due during the year
	4.	The company experienced reduced bad debts because of improved cash collection practices