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Current Position Analysis The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: Current Year

Current Position Analysis

The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years:

Current Year Previous Year
Current assets:
Cash $646,800 $537,600
Marketable securities 748,900 604,800
Accounts and notes receivable (net) 306,300 201,600
Inventories 732,600 429,400
Prepaid expenses 377,400 274,600
Total current assets $2,812,000 $2,048,000
Current liabilities:
Accounts and notes payable
(short-term) $429,200 $448,000
Accrued liabilities 310,800 192,000
Total current liabilities $740,000 $640,000

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

Current Year Previous Year
1. Working capital $ $
2. Current ratio
3. Quick ratio

b. The liquidity of Nilo has from the preceding year to the current year. The working capital, current ratio, and quick ratio have all . Most of these changes are the result of an in current assets relative to current liabilities.

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