Current position analysis

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

Line Item Description	Current Year	Previous Year
Current assets:
Cash	$603,100	$480,000
Marketable securities	698,300	540,000
Accounts and notes receivable (net)	285,600	180,000
Inventories	592,000	439,200
Prepaid expenses	305,000	280,800
Total current assets	$2,484,000	$1,920,000
Current liabilities:
Accounts and notes payable (short-term)	$400,200	$420,000
Accrued liabilities	289,800	180,000
Total current liabilities	$690,000	$600,000

a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.

Line Item Description	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 fill in the blank 1 of 3

improveddeclined

from the preceding year to the current year. The working capital, current ratio, and quick ratio have all fill in the blank 2 of 3

increaseddecreased

. Most of these changes are the result of an fill in the blank 3 of 3

increasedecrease

in current assets relative to current liabilities.