Current Position Analysis

The following data were taken from the comparative balance sheet of Osborn Sisters Company for the years ended December 31, 20Y9 and December 31, 20Y8:

				Dec. 31, 20Y9			Dec. 31, 20Y8
Cash				$378,800			$288,800
Temporary investments				404,300			316,400
Accounts and notes receivable (net)				371,900			344,800
Inventories				519,800			427,500
Prepaid expenses				250,200			172,500
	Total current assets			$1,925,000			$1,550,000
Accounts payable				$319,000			$350,000
Accrued liabilities				231,000			150,000
	Total current liabilities			$550,000			$500,000

a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.

	20Y9		20Y8
Working capital		$		$
Current ratio
Quick ratio

b. The liquidity of Osborn Sisters Company has from 20Y8 to the 20Y9. The working capital, current ratio, and quick ratio have all . Most of these changes are the result of .