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: $ 300,000 $ 391,000 Cash Marketable securities 515,000 354,000 Accounts and notes receivable (net) 634,000 426,000 Inventories 368,000 222,000 Prepaid expenses 182,000 138,000 $ 2,090,000 Total current assets $1,440,000 Current liabilities: $ 725,000 $ 600,000 Accounts and notes payable (short-term) Accrued liabilities 275,000 $1,000,000 300,000 $ 900,000 Total current liabilities