=+LG 3 E3–4 Crane Housing PLC has a current ratio of 2.5 and total current assets worth £5 million. Crane housing also has some long-term borrowings where the bank has stipulated that the current ratio of the firm should not drop below 1.5. The management has planned to take on a new housing project in Birmingham, which will increase the inventory by £3 million. The firms plan to fund this inventory by increasing accounts payable.