Pearl Automotive Ltd. has a current ratio of 2. The company wants to window dress its financial statements. Which of the following transactions will increase the current ratio of Pearl Automotive, assuming all other variables remain constant?
A. ?Selling of inventory on credit
B. ?Purchase of inventory on credit
C. ?Collecting accounts receivable
D. ?Purchase of fixed assets for cash
E. ?Repayment of short-term loan
Answer: E
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