When a retail store cannot sell its products, inventory balances increase. If the store's current ratio has not changed for the past three years, what conclusion below is true?

When the current ratio remains constant, there is no need for concern, as long as the current ratio does not decrease.

Elther other current assets decreased to offset the inventory increase, or current liabilities also increased.

The composition of current assets and current liabilities does not matter, as long as there is enough inventory to allow for more sales.

Since inventory is a current asset, any increases should cause the current ratio to decrease.