Based on these calculations, is this company's liquidity position in 2018 better or worse than 2017? Please help me explain.

I'll appreciate it.

Thank you very much.

a. Current Ratio Current ratio : Current assets / Current liabilities 2017 Current assets : 8,687 Current liabilities =5,154 Current ratio : 8,687/5,154 : 1.685 :1 2018 Current assets : 11,178 Current liabilities : 6,621 Current ratio = 11,178 /6,621 = 1.688 : 1 b. Quick Ratio Quick ratio = Liquid assets / Current liabilities Liquid assets : Current asset - ( Inventory + prepaid expenses ) 2017 Liquid assets : 8,687 - ( 4,986 + 369): 3,332 Quick ratio : 3,332/5,154 : 0.6464 :1 or 0.65 :1 2018 Liquid assets : 11,178 ( 5,404 + 488 ) : 5,286 Quick ratio : 5,286 / 6,621 : 0.798:1 or 0.80 :1