Current Position Analysis

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

				Current Year			Previous Year
Current assets:
Cash				$383,000			$302,400
Marketable securities				443,500			340,200
Accounts and notes receivable (net)				181,500			113,400
Inventories				253,400			102,500
Prepaid expenses				130,600			65,500
	Total current assets			$1,392,000			$924,000
Current liabilities:
Accounts and notes payable
	(short-term)			$278,400			$294,000
Accrued liabilities				201,600			126,000
	Total current liabilities			$480,000			$420,000

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	$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

b. The liquidity of Albertini 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.