Current Position Analysis

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

				Current Year			Previous Year
Current assets:
Cash				$303,600			$246,000
Marketable securities				351,600			276,800
Accounts and notes receivable (net)				143,800			92,200
Inventories				651,400			475,200
Prepaid expenses				335,600			303,800
	Total current assets			$1,786,000			$1,394,000
Current liabilities:
Accounts and notes payable
	(short-term)			$272,600			$287,000
Accrued liabilities				197,400			123,000
	Total current liabilities			$470,000			$410,000

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 Albertini has

improveddeclined

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

increaseddecreased

. Most of these changes are the result of an

increasedecrease

in current assets relative to current liabilities.