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	$459,800			$364,800
Marketable securities	532,400			410,400
Accounts and notes receivable (net)	217,800			136,800
Inventories	1,016,400			702,700
Prepaid expenses	523,600			449,300
	Total current assets	$2,750,000			$2,064,000
Current liabilities:
Accounts and notes payable
	(short-term)	$319,000			$336,000
Accrued liabilities	231,000			144,000
	Total current liabilities	$550,000			$480,000

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	$fill in the blank 1	$fill in the blank 2
2. Current ratio	fill in the blank 3	fill in the blank 4
3. Quick ratio	fill in the blank 5	fill in the blank 6

b. The liquidity of Nilo has

improved/declined

from the preceding year to the current year. The working capital, current ratio, and quick ratio have all

increased/decreased

. Most of these changes are the result of an

increase/decrease

in current assets relative to current liabilities.