If a company has a current ratio of 1.2:1, what respective effects will the borrowing of cash by short-term debt and collection of accounts receivable have on the ratio? $\begin{array}{lc}
&\text { Short-term Borrowing } & \text { Collection of Receivables } \
\hline a.& \text { Increase } & \text { No effect } \
b.&\text { Increase } & \text { Increase } \
c.&\text { Decrease } & \text { No effect } \
d.&\text { Decrease } & \text { Decrease }
\end{array}$

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The Answer of If a company has a current ratio of 1.2:1, what respective effects will the borrowing of cash by short-term debt and collection of accounts receivable have on the ratio? $\begin{array}{lc}
&\text { Short-term Borrowing } & \text { Collection of Receivables } \
\hline a.& \text { Increase } & \text { No effect } \
b.&\text { Increase } & \text { Increase } \
c.&\text { Decrease } & \text { No effect } \
d.&\text { Decrease } & \text { Decrease }
\end{array}$

If a Company Has a Current Ratio of 1