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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

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 $424,100 $324,000
Marketable securities 491,000 364,500
Accounts and notes receivable (net) 200,900 121,500
Inventories 982,100 658,800
Prepaid expenses 505,900 421,200
Total current assets $2,604,000 $1,890,000
Current liabilities:
Accounts and notes payable
(short-term) $359,600 $378,000
Accrued liabilities 260,400 162,000
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.

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.

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