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 $$372,400$ $$285,500$

Marketable securities $425,900326,400$

Accounts and notes receivable $($net$)531,700408,100$

Inventories $343,200210,600$

Prepaid expenses $146,80089,400$

Total current assets $$1,820,000$ $$1,320,000$

Current liabilities:

Accounts and notes payable $($short$-$term$)$ $$404,000$ $$352,000$

Accrued liabilities $296,000248,000$

Total current liabilities $$700,000$ $$600,000$

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

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.