chapter 16

Current position analysis

The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years:

Line Item Description	Current Year	Previous Year
Current assets:
Cash	$501,600	$403,200
Marketable securities	580,800	453,600
Accounts and notes receivable (net)	237,600	151,200
Inventories	217,800	117,100
Prepaid expenses	112,200	74,900
Total current assets	$1,650,000	$1,200,000
Current liabilities:
Accounts and notes payable (short-term)	$319,000	$336,000
Accrued liabilities	231,000	144,000
Total current liabilities	$550,000	$480,000

a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.

Line Item Description	Current Year	Previous Year
1. Working capital	$fill in the blank 1	$fill in the blank 2
2. Current ratio	fill in the blank 3	fill in the blank 4
3. Quick ratio	fill in the blank 5	fill in the blank 6