Pepsi Corporations current ratio is 0.5 while Coke Companyscurrent ratio is 1.5.

Pepsi Corporations current ratio is 0.5 while Coke Companyscurrent ratio is 1.5. Both firms want to window dress theircoming end-of-year financial statements. As part of their windowdressing strategy each firm will double its current liabilities byadding short-term debt and placing the funds obtained in the cashaccount. Which of the statements below best describes the actualresults of these transactions?The transactions will have no effect on the current ratios.The current ratios of both firms will be increased.The current ratios of both firms will be decreased.Only Pepsi Corporations current ratio will be increased.Only Coke Companys current ratio will be increased.

 
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