current position analysis

Ch 17-3 Exercises and Problems B B Current Position Analysis The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: Current Year Previous Y Current assets: Cash $504,000 Marketable securities 8 8 Accounts and notes receivable (net) Inventories Prepaid expenses $601,900 697,000 285,100 1,093,000 563,000 $3,240,000 9 + $2,457,000 1 Total current assets Current liabilities: Accounts and notes payable (short-term) Accrued liabilities $417,600 302,400 $720,000 $441,000 189,000 $630,000 Total current liabilities 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 $ Ch 17-3 Exercises and Problems 285,100 1,093,000 563,000 $3,240,000 189,000 730,200 466,800 $2,457,000 Accounts and notes receivable (net) Inventories Prepaid expenses Total current assets Current liabilities: Accounts and notes payable (short-term) Accrued liabilities Total current liabilities $417,600 302,400 $441,000 189,000 $630,000 $720,000 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 2. Current ratio 2. Current ratio 3. Quick ratio C CD C UUL b. The liquidity of Nilo has ratio, and quick ratio have all current assets relative to current liabilities. from the preceding year to the current year. The working capital, current . Most of these changes are the result of an