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				$342,400			$257,600
Marketable securities				396,400			289,800
Accounts and notes receivable (net)				162,200			96,600
Inventories				909,500			673,400
Prepaid expenses				468,500			430,600
	Total current assets			$2,279,000			$1,748,000
Current liabilities:
Accounts and notes payable
	(short-term)			$307,400			$322,000
Accrued liabilities				222,600			138,000
	Total current liabilities			$530,000			$460,000

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	$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 improved from the preceding year to the current year. The working capital, current ratio, and quick ratio have all increased . Most of these changes are the result of an increase in current assets relative to current liabilities.