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 $335,200 388,100 Marketable securities Accounts and notes receivable (net) Inventories $275,200 309,600 103,200 158,700 388,100 199,900 $1,470,000 209,800 134,200 Prepaid expenses $1,032,000 Total current assets Current liabilities: Accounts and notes payable (short-term) Accrued liabilities Total current liabilities $301,000 $284,200 205,800 $490,000 129,000 $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 $ $ 1,568,000 X 1,075,000 X 2. Current ratio 4.2 X 3.5 X 3. Quick ratio 1.8 1.6 b. The liquidity of Nilo has improved from the preceding year to the current year. The working capital, current ratio, and quick ratio have all increased . Most of these changes are the result of an increase in current assets relative to current liabilities