Based on the following financial information, which best describes the company's liquidity and quality of its current assets over the past three years?

	20Y1	20Y2	20Y3
Current ratio	1.5	1.4	1.4
Quick ratio	0.7	0.7	0.7
Working capital (000s)	$ 644	$ 548	$ 656
Accounts receivable days on hand	63	48	44
Inventory days on hand	102	77	82

Liquidity is stable and the quality of assets appears to be improving given the quickening of both accounts receivable days on hand and inventory days on hand over the three year period. Liquidity has been improving steadily, but the quality of current assets has lessened as accounts receivable days on hand and inventory days on hand have deteriorated. The companys liquidity is stable but asset quality is declining steadily as borne out by the shortening of both accounts receivable days on hand and inventory days on hand by about 20 days. The company is very liquid as indicated by its not having to rely on inventory to cover any of its current liabilities. The situation appears to be even stronger because its accounts receivable and inventory days on hand have shortened by about 20 days each.

(Note: option d) was wrong which was post by expert earlier)