1. 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				$402,000			$336,000
   Marketable securities				465,500			378,000
   Accounts and notes receivable (net)				190,500			126,000
   Inventories				759,000			561,200
   Prepaid expenses				391,000			358,800
   	Total current assets			$2,208,000			$1,760,000
   Current liabilities:
   Accounts and notes payable
   	(short-term)			$266,800			$280,000
   Accrued liabilities				193,200			120,000
   	Total current liabilities			$460,000			$400,000

   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.