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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

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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 $536,000 $455,600 Marketable securities 706,000 537,600 Accounts and notes receivable (net) 869,200 646,800 Inventories 998,600 672,500 Prepaid expenses 493,800 418,100 Total current assets $3,603,600 $2,730,600 Current liabilities: Accounts and notes payable (short-term) $659,800 $546,700 Accrued liabilities 250,200 273,300 Total current liabilities $910,000 $820,000 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round the ratios to one decimal place and the working capital to the nearest dollar. Current Year Previous Year 1. Working capital 2. Current ratio 3. 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 1 Current position analysis The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: 2 Current Year Previous Year vouw Current assets: Cash Marketable securities Accounts and notes receivable (net) Inventories Prepaid expenses Total current assets Current liabilities: Accounts and notes payable (short-term) Accrued liabilities Total current liabilities $536,000 706,000 869,200 998,600 493,800 $3,603,600 $455,600 537,600 646,800 672,500 418,100 $2.730, 600 9 10 12 13 14 15 16 $659,800 250,200 $910,000 $546,700 273,300 $20,000 17 18 Using formulas and cell references, perform the required analysis, and input your answers into the Current Year and Previous Year columns respectively. Transfer the numeric results for the green entry cells (C20:022) into the appropriate fields in CNOWW2 for grading. Formulas 19 Current Year Previous Year 20 21 223 1. Working capital 2. Current ratio . Quick ratio Data Calculation Mode: Automatic

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