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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 $492,500 $378,000 Marketable securities 570,200 Accounts and notes receivable (net) 233,300 Inventories 1,520,600 425,300 141,700 1,076,000 688,000 $2,709,000 Prepaid expenses 783,400 Total current assets $3,600,000 Current liabilities: $417,600 $441,000 Accounts and notes payable (short-term) Accrued liabilities Total current liabilities 302,400 189,000 $720,000 $630,000 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 2,880,000 $ 2,079,000 2. Current ratio 5 3. Quick ratio 2.05 X Current Position Analysis Sherwood, Inc., the parent company of Frito-Laby snack foods and Sherwood beverages, had the following current assets and current liabilities at the end of two recent years: Current Year Previous Year (in millions) (in millions) Cash and cash equivalents $4,078 $4,381 Short-term investments, at cost 2,897 8.137 Accounts and notes receivable, net 9,209 3,346 Inventories 2.556 Prepaid expenses and other current assets 952 1,056 Short-term obligations 301 Accounts payable 9,139 13,998 2. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place Current Year Previous Year 1. Current ratio 4,042 2. Quick ratio b. The liquidity of Sherwood has increased some over this time period. Both the current and active increased Sherwood is a strong company with ample resources for meeting short term obligations to buidity as measured by the current and ratios proved during this period