Improving the Current Ratio

Improving the current ratio
Carter Corporation financed construction of a new addition to its facilities with a large long-term note payable.As a condition of obtaining the loan,Carter agreed to maintain a current ratio at year-end of at least 1.7 to 1.If Carter fails to maintain this ratio,the lender may demand immediate repayment of the principal amount of the note and all unpaid accrued interest.As the end of the year approaches,Carter is concerned about the magnitude of its current ratio.Suggest some actions that the company might take to increase the magnitude of the current ratio.

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Paying any current liabilities will incr...

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