Use cash to increase inventory holdings

Reference no: EM13299210

A firm wants to strengthn its financial position. Which of the following actions would increase its current ration?
a. reduce the company's days sales outstanding to the industry average and use the resulting ash savings to purchase plant and equipment
b. use cash to repurchase some of the company's own stock
c. borrow using hsort-term debt and use teh proceeds to repay debt that has a maturity of more than one year.
d. issue new stock and then use some of the proceeds to purchase additional inventory and hold the reminder as cash
e. use cash to increase inventory holdings

Reference no: EM13299210

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