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				$472,000			$376,000
Marketable securities				546,500			423,000
Accounts and notes receivable (net)				223,500			141,000
Inventories				962,300			716,800
Prepaid expenses				495,700			458,200
	Total current assets			$2,700,000			$2,115,000
Current liabilities:
Accounts and notes payable
	(short-term)			$313,200			$329,000
Accrued liabilities				226,800			141,000
	Total current liabilities			$540,000			$470,000

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.