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	$384,600			$304,000
Marketable securities	445,300			342,000
Accounts and notes receivable (net)	182,100			114,000
Inventories	759,000			561,200
Prepaid expenses	391,000			358,800
	Total current assets	$2,162,000			$1,680,000
Current liabilities:
Accounts and notes payable
	(short-term)	$266,800			$280,000
Accrued liabilities	193,200			120,000
	Total current liabilities	$460,000			$400,000

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	$fill in the blank
2. Current ratio	fill in the blank	fill in the blank
3. Quick ratio	fill in the blank	fill in the blank

b. The liquidity of Albertini has

improved or declined

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

increased or decreased

. Most of these changes are the result of an

increase or decrease

in current assets relative to current liabilities.