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

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

Working capital

Current ratio

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.