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 $389,900 $300,800

Marketable securities 451,400 338,400

Accounts and notes receivable (net) 184,700 112,800

Inventories 534,600 344,000

Prepaid expenses 275,400 220,000

Total current assets $1,836,000 $1,316,000

Current liabilities:

Accounts and notes payable (short-term) $313,200 $329,000

Accrued liabilities 226,800 141,000

Total current liabilities $540,000 $470,000

a.Determine for each year (1) theworking capital, (2) thecurrent ratio, and (3) thequick ratio. Round ratios to one decimal place.