The following data were taken from the balance sheet of Marine Equipment Company:

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

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Dec. 31, 2007 Dec. 31, 2006 Cash Marketable securities Accounts and notes receivable (net) Inventories Prepaid expenses Accounts and notes payable (short-term) Accrued liabilities $118,000 152,000 210,000 345,000 50,000 190,000 60,000 $95,000 131,000 198,000 326,000 45,000 208,000 57,000