Given - Firm has current ratio of 1.7 and Total liabilities = $700,000

So, Current ratio = current assets / current liabilities

1.7 = current assets / 700,000

Therefore, current assets = 1.7 * 700,000 = $1,190,000

[Here, we are assuming total liabilities consist of only current liabilities.]

Now, Inventory makes 45% of firm current assets. Assuming firm has no other non liquid asset like prepaid expenses, firm's liquid assets are (1 - 0.45) 55% of current assets.

Therefore, firm's liquid/quick assets = 0.55 * 1,190,000 = $654,500

Hence, Quick ratio = liquid assets / current liabilities

= 654,500 / 700,000

= 0.935

= 0.94

So, correct option to choose would be "c. 0.94".