d. With regard to the short-term liquidity of the company which of the following statements is correct? The drop in quick ratio in year 2 was due to the increased cash out flow from financial activities. Decrease in inventory is the major contributor for the increase in the quick ratio in year 2. O The rise in the quick ratio in year 3 was due to the increased cash inflow from operations. O The increase in the cash balance was the major contributor for the increase in the quick ratio in year 2. e. Which of these statements is correct based on the answers above? Both the working capital and current ratio show the same pattern of liquidity expansion from Year 1 to Year 2, then contraction from Year 2 to Year 3. O The working capital and current ratio show expansion of liquidity in all 3 years Both the working capital and current ratio show the same pattern of liquidity contraction from Year 1 to Year 2, then expansion from Year 2 to Year 3. O Working capital shows expansion of liquidity in all 3 years, but the current ratio shows contraction from Year 2 to Year 3