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? The current ratio has increased by 0.67 and liquidity will appear worse. The current ratio has increased by 0.67 and liquidity will appear better. The current ratio has decreased by 0.5 and liquidity will appear worse. None of the these