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The King Carpet Company has $3,010,000 in cash and a total of $11,580,000 in current...

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Accounting

The King Carpet Company has $3,010,000 in cash and a total of $11,580,000 in current assets. The firm's current liabilities equal $6,190,000 such that the firm's current ratio equals 1.9. The company's managers want to reduce the firm's cash holdings down to $1,200,000 by paying $596,000 in cash to expand the firm's truck fleet and using $1,214,000 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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