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 $$375,000$ $$300,000$

Marketable securities $500,000354,000$

Accounts and notes receivable $($net$)625,000426,000$

Inventories $410,000222,000$

Prepaid expenses $190,000138,000$

Total current assets $$2,100,000$ $$1,440,000$

Current liabilities:

Accounts and notes payable $($short$-$term$)$ $$725,000$ $$600,000$

Accrued liabilities $275,000300,000$

Total current liabilities $$1,000,000$ $$900,000$

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 a$($n$)$

fill in the blank $3$ of $3$

in current assets relative to current liabilities.