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"The King Carpet Company has $ 3 comma 000 comma 000 in cash and a total of $ 12 comma 000 comma 000 in current assets. The firm's current liabilities equal $ 6 comma 000 comma 000 such that the firm's current ratio equals 2.0. The company's managers want to reduce the firm's cash holdings down to $ 1 comma 000 comma 000 by paying $ 500 comma 000 in cash to expand the firm's truck fleet and using $ 1 comma 500 comma 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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"The King Carpet Company has $ 3 comma 000 comma 000 in cash and a total of $ 12 comma 000 comma 000...
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