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 Year Current assets: Cash Marketable securities $491,000 568,500 $369,600 415,800 Accounts and notes receivable (net ) 232, 138,600 Inventories 1,404,500 Prepaid expenses 1,006,500 643,500 723,500 $3,4 $2,574, Total current assets Current liabilities : Accounts and notes payable (short -term ) Accrued liabilities Total current liabilities $440,800 319,200 $462,000 198,000 $760,000 $660,000

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 Year Current assets: Cash Marketable securities Accounts and notes receivable (net) Inventories $491,000 568,500 232,500 1,404,500 723,500 $3,420,000 $369,600 415,800 138,600 1,006,500 643,500 $2,574,000 Prepaid expenses Total current assets Current liabilities: Accounts and notes payable (short-term) $462,000 $440,800 319,200 198,000 Accrued liabilities Total current liabilities $760,000 $660,000 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 Check My Work 2 more Check My Work uses remaining Marketable securities 415,800 Accounts and notes receivable (net) 138,600 Inventories 568,500 232,500 1,404,500 723,500 $3,420,000 Prepaid expenses 1,006,500 643,500 $2,574,000 Total current assets Current liabilities: Accounts and notes payable (short-term) $440,800 319,200 Accrued liabilities $462,000 198,000 $660,000 Total current liabilities $760,000 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 3. Quick ratio b. The liquidity of Nilo has quick ratio have all current liabilities from the preceding year to the current year. The working capital, current ratio, and Most of these changes are the result of an in current assets relative to