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?

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