CURRENT RATIO

10 . Fifer Co has a current ratio of 1.2:1 which is below the industry average. Fifer Co wants to increase its current ratio by the year end.
Which of the following actions, taken before the year end, would lead to an increase in the current ratio?
O Return some inventory which had been purchased for cash and obtain a full refund on the
cost
O Make a bulk purchase of inventory for cash to obtain a large discount
O Make an early payment to suppliers, even though the amount is not due
O Offer early payment discounts in order to collect receivables more quickly
(2 marks)

ANS- C
Good day,please i don’t understand why the answer is C. I’ll appreciate if you can explain better.