A company has current assets of $200 (cash of $65 and inventory of $135) and current liabilities of $120. At year end, management uses cash of $60 to repay accounts payable. After the repayment, what is the effect on the company's current ratio, and is liquidity better or worse?

A	The current ratio has increased by 0.67 and liquidity will appear worse.

B	The current ratio has increased by 0.67 and liquidity will appear better.

C	The current ratio has decreased by 0.5 and liquidity will appear worse.

D	None of the above.