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				$456,000			$338,000
Marketable securities				528,000			380,300
Accounts and notes receivable (net)				216,000			126,700
Inventories				792,000			475,800
Prepaid expenses				408,000			304,200
	Total current assets			$2,400,000			$1,625,000
Current liabilities:
Accounts and notes payable
	(short-term)			$435,000			$455,000
Accrued liabilities				315,000			195,000
	Total current liabilities			$750,000			$650,000

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

improved/declined

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

increased/decreased

. Most of these changes are the result of an

increase/decrease

in current assets relative to current liabilities.