The following data were taken from the balance sheet of Nilo 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 Previous Year Current assets: Cash Marketable securities Accounts and notes receivable (net) Inventories Prepaid expenses 414,000 496,800 619,200 351,900 188,100 $2,070,000 320,000 336,000 464,000 272,000 208,000 1,600,000 Total current assets Current liabilities: Accounts and notes payable (short-term) Accrued liabilities 675,000 225,000 900,000 600,000 200,000 800,000 Total current liabilities