urrent Position Analysis

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				$577,600			$475,200
Marketable securities				668,800			534,600
Accounts and notes receivable (net)				273,600			178,200
Inventories				1,003,200			644,200
Prepaid expenses				516,800			411,800
	Total current assets			$3,040,000			$2,244,000
Current liabilities:
Accounts and notes payable
	(short-term)			$440,800			$462,000
Accrued liabilities				319,200			198,000
	Total current liabilities			$760,000			$660,000

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.