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				$316,500			$258,000
Marketable securities				366,500			290,300
Accounts and notes receivable (net)				150,000			96,700
Inventories				873,200			629,500
Prepaid expenses				449,800			402,500
	Total current assets			$2,156,000			$1,677,000
Current liabilities:
Accounts and notes payable
	(short-term)			$284,200			$301,000
Accrued liabilities				205,800			129,000
	Total current liabilities			$490,000			$430,000

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.