Unit 3 Lab Assignmem Homework: Unit 3 Lab Assignment Yetty Marte 05/11/21 1220 AM 20 of 20 (3 complete Score: 0 of 1 pt HW Score: 15%. 3 of 2018 P4-24 (similar to) Question Help (Liquidity analysis) When firms enter into loan agreements with their bank, it is very common for the agreement to have a restriction on the inte firm has to maintain. So, it is important that the firm be aware of the effects of their decisions on the current ratio. Consider the shoot Avanced Auto (AP) 2009. The firm had total current assets of $1,775,603,700 and current liabilities of $1,365,849,000 a. What is the firm's current ratio? b. If the firm were to expand its investment in inventory and finance the expansion by increasing accounts payable, how much could not reducing the current ratio below 1.2? c. If the company needed to raise its current ratio to 1.5 by reducing its investment in current assets and simultaneously reducing accounts payable and short-term cent how much would it have to reduce current assets to accomplish this goal? a. What is the firm's current ratio? The firm's current ratio is (Round to one decimal place.)