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				$447,900			$391,100
Marketable securities				589,900			461,500
Accounts and notes receivable (net)				726,200			555,400
Inventories				904,900			499,200
Prepaid expenses				447,500			310,400
	Total current assets			$3,116,400			$2,217,600
Current liabilities:
Accounts and notes payable (short-term)				$710,500			$586,700
Accrued liabilities				269,500			293,300
	Total current liabilities			$980,000			$880,000

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.

Open spreadsheet

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	$fill in the blank 2			$fill in the blank 3
2. Current ratio	fill in the blank 4			fill in the blank 5
3. Quick ratio	fill in the blank 6			fill in the blank 7

The liquidity of Nilo has

improveddeclined

1. 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 a(n)in current assets relative to current liabilities.

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increasedecrease

increaseddecreased