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(Liquidity Analysis) ?The King Carpet Company has $3,180,000 ?in cash and a total of $11,940,000 ?in current assets. The firm's current liabilities equal $5,820,000 ?such that the firm's current ratio equals 2.1. ?The company's managers want to reduce the firm's cash holdings down to $1,090,000 ?by paying $578,000 ?in cash to expand the firm's truck fleet and using $1,512,000 ?in cash to retire a short-term note. If they carry this plan through, what will happen to the firm's current ratio? (Round to one decimal place.).
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