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Davis Retail, Inc., has total assets of $7,500,000 and a current ratio of 2.3 times before purchasing $750,000 of merchandise on credit for resale. After this purchase, the current ratio will (7500+750)/(250+750) A. Remain at 2.3 times. B. Be higher than 2.3 times. C. Be lower than 2.3 times. D. Be exactly 2.53 times. |