Dallas Company's current ratio is 4 to 3.  The company is negotiating a loan, and the company's management understands that a higher (i.e., better) current ratio will reduce the company's cost of borrowing (interest rate).  Which of the following transactions will improve Houston Company's current ratio? Select one: a. making a payment on a long-term debt b. using cash to pay current liabilities c. purchasing inventory on account d. collecting on some of the company's accounts receivable e. none of the above

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Q: Need answer please

A: If you have any help please let me know in comment box and then I will help you.

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Liquidity Risk Exposure

Answer: c