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

a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.
b. What conclusions can be drawn from these data as to the company's ability to meet its currently maturing debts?
 

Current Year Prevlous Year $ 480,000 576,000 384,000 408,000 552,000 $2,400,000 600,000 200,000 $ 800,000 $ 392,000 411,600 Cash Marketable securities Accounts and notes receivable (net) 316,400 Inventories 333,200 Prepaid expenses 506,800 $1,960,000 $ 525,000 Total current assets Accounts and notes payable (short-term) Accrued llabilities 175,000 Total current liabilities $ 700,000