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				$560,100			$464,000
Marketable securities				648,600			522,000
Accounts and notes receivable (net)				265,300			174,000
Inventories				751,700			530,700
Prepaid expenses				387,300			339,300
	Total current assets			$2,613,000			$2,030,000
Current liabilities:
Accounts and notes payable
	(short-term)			$388,600			$406,000
Accrued liabilities				281,400			174,000
	Total current liabilities			$670,000			$580,000

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 Nilo has from the preceding year to the current year. The working capital, current ratio, and quick ratio have all . Most of these changes are the result of an in current assets relative to current liabilities.