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				$433,200			$353,600
Marketable securities				501,600			397,800
Accounts and notes receivable (net)				205,200			132,600
Inventories				752,400			444,100
Prepaid expenses				387,600			283,900
	Total current assets			$2,280,000			$1,612,000
Current liabilities:
Accounts and notes payable
	(short-term)			$348,000			$364,000
Accrued liabilities				252,000			156,000
	Total current liabilities			$600,000			$520,000

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	$			$
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.