Current Position Analysis

The following data were taken from the balance sheet of Bock Suppliers Company:

				Dec. 31, 2014			Dec. 31, 2013
Cash				$362,500			$276,000
Temporary investments				419,800			310,500
Accounts and notes receivable (net)				171,700			103,500
Inventories				769,600			505,100
Prepaid expenses				396,400			322,900
	Total current assets			$2,120,000			$1,518,000
Accounts and notes payable
	(short-term)			$307,400			$322,000
Accrued liabilities				222,600			138,000
	Total current liabilities			$530,000			$460,000

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

			2014			2013
1. Working capital	$			$
2. Current ratio
3. Quick ratio

b. The liquidity of Bock Suppliers has SelectimproveddeclinedItem 7 from the preceding year to the current year. The working capital, current ratio, and quick ratio have all SelectincreaseddecreasedItem 8 . Most of these changes are the result of an SelectincreasedecreaseItem 9 in current assets relative to current liabilities.