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 assets: Cash $285,800 $213,200 Marketable securities 330,900 239,900 79,900 Accounts and notes receivable (net) 135,300 Inventories 930,600 725,300 Prepaid expenses 479,400 463,700 Total current assets $2,162,000 $1,722,000 Current liabilities: Accounts and notes payable (short-term) $272,600 $287,000 Accrued liabilities 197,400 123,000 Total current liabilities $470,000 $410,000 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 1,692,000 $ 1,312,000 2. Current ratio 4.6 4.2 3. Quick ratio 3.6 X 3.1 X b. The liquidity of Nilo has improved from the preceding year to the current year. The working capital, current ratio, and quick ratio have all increased . Most of these changes are the result of an increase in current assets relative to current liabilities. Check My Work