Liquidity Manufacturing Inc. has cash of $68, accounts receivable of $112, accounts payable of $235, inventory of $538, property, plant and equipment of $93 (net of depreciation), long-term debt (LTD) of $110.

1. What is the value of the quick ratio?

2. What is the current ratio?

3. The firm's liquidity ratios have improved over the past three years, despite its cash balance declining 50% during this period - please provide an explanation as to how this may have occurred?