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 $$503,900$ $$408,000$

Marketable securities $583,400459,000$

Accounts and notes receivable $($net$)238,700153,000$

Inventories $1,647,4001,120,000$

Prepaid expenses $848,600716,000$

Total current assets $$3,822,000$ $$2,856,000$

Current liabilities:

Accounts and notes payable

$($short$-$term$)$ $$452,400$ $$476,000$

Accrued liabilities $327,600204,000$

Total current liabilities $$780,000$ $$680,000$

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.