The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years:

Line Item Description Current Year Previous Year

Current assets:

Cash $$471,200$ $$367,200$

Marketable securities $545,600413,100$

Accounts and notes receivable $($net$)223,200137,700$

Inventories $859,300625,900$

Prepaid expenses $442,700400,100$

Total current assets $$2,542,000$ $$1,944,000$

Current liabilities:

Accounts and notes payable $($short$-$term$)$ $$359,600$ $$378,000$

Accrued liabilities $260,400162,000$

Total current liabilities $$620,000$ $$540,000$

a$.$ Determine for each year $(1)$ the working capital, $(2)$ the current ratio, and $(3)$ the quick ratio. Round ratios to one decimal place.

Line Item Description Current Year Previous Year

$1.$ Working capital $fill in the blank $1$

$fill in the blank $2$

$2.$ Current ratio fill in the blank $3$

fill in the blank $4$

$3.$ Quick ratio fill in the blank $5$

fill in the blank $6$

b$.$ The liquidity of Nilo has fill in the blank $1$ of $3$

from the preceding year to the current year. The working capital, current ratio, and quick ratio have all fill in the blank $2$ of $3$

$.$ Most of these changes are the result of an fill in the blank $3$ of $3$

in current assets relative to current liabilities.