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
Marketable securities				425,900
Accounts and notes receivable (net)				531,700
Inventories				343,200
Prepaid expenses				146,800
	Total current assets			$1,820,000
Current liabilities:
Accounts and notes payable (short-term)				$404,000
Accrued liabilities				296,000
	Total current liabilities			$700,000

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	?			?
2. Current ratio	?			?
3. Quick ratio	?			?

b. The liquidity of Albertini has (improved or declined) from the preceding year to the current year. The working capital, current ratio, and quick ratio have all (increased or decreased). Most of these changes are the result of an (increase or decrease) in current assets relative to current liabilities.