Below Is Selected Data for Gertup Corporation as of 12/31/05

question 56

Multiple Choice

Below is selected data for Gertup Corporation as of 12/31/05:
$$\begin{array} { l r } \text { Total assets } & \$ 5,500 \\\text { Current assets } & 2,750 \\\text { Long-term debt } & 450 \\\text { Current ratio } & 2.5 \\\text { Inventory } & 1,500 \\\text { For year ended 12/31/05 } & \\\text { Sales } & \$ 18,500 \\\text { Cost of goods sold } & 14,800\end{array}$$
-Gertup has increased its borrowing since last year, in part to finance the increased credit terms offered to customers. Which of the following actions would not decrease its borrowing?

• A)Decrease dividends paid
• B)Increase profit margin
• C)Change from LIFO to FIFO for inventory cost purposes
• D)Replace cash dividends with stock dividends

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