Current Position Analysis

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

	Dec. 31, 2014		Dec. 31, 2013
Cash	$465,100			$330,400
Temporary investments	538,600			371,700
Accounts and notes receivable (net)	220,300			123,900
Inventories	807,800			611,800
Prepaid expenses	416,200			391,200
	Total current assets	$2,448,000			$1,829,000
Accounts and notes payable
	(short-term)	$394,400			$413,000
Accrued liabilities	285,600			177,000
	Total current liabilities	$680,000			$590,000

a. Determine for each year (1) theworking capital, (2) thecurrent ratio, and (3) thequick ratio. Round ratios to one decimal place.

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

b. The liquidity of Bock Suppliers hasSelectimproveddeclinedItem 7from the preceding year to the current year. The working capital, current ratio, and quick ratio have allSelectincreaseddecreasedItem 8. Most of these changes are the result of anSelectincreasedecreaseItem 9in current assets relative to current liabilities.