The King Carpet Company has
$3,040,000
in cash and a total of
$12,230,000
in current assets. The​ firm's current liabilities equal
$5,080,000
such that the​ firm's current ratio equals
2.4.
The​ company's managers want to reduce the​ firm's cash holdings down to
$1,070,000
by paying
$503,000
in cash to expand the​ firm's truck fleet and using
$1,467,000
in cash to retire a​ short-term note. If they carry this plan​ through, what will happen to the​ firm's current​ ratio?