Current Position Analysis

The following data were taken from the comparative balance sheet of Icon Living, Inc., for the years ended December $31,20$Y$9$ and December $31,20$Y$8$:

Dec. $31,20$Y$9$ Dec. $31,20$Y$8$

Cash $$313,900$ $$246,200$

Temporary investments $335,000269,700$

Accounts and notes receivable $($net$)308,100294,100$

Inventories $430,700364,500$

Prepaid expenses $163,300115,500$

Total current assets $$1,551,000$ $$1,290,000$

Accounts payable $$191,400$ $$210,000$

Accrued liabilities $138,60090,000$

Total current liabilities $$330,000$ $$300,000$

a$.$ Determine for each year $(1)$ the working capital, $(2)$ the current ratio, and $(3)$ the quick ratio. Round ratios to one decimal place.

$20$Y$920$Y$8$

Working capital $fill in the blank $1$

$fill in the blank $2$

Current ratio fill in the blank $3$

fill in the blank $4$

Quick ratio fill in the blank $5$

fill in the blank $6$

b$.$ The liquidity of Icon Living, Inc., has

improved

from $20$Y$8$ to the $20$Y$9.$ The working capital, current ratio, and quick ratio have all

decreased

$.$ Most of these changes are the result of

an increase in current liabilities

$.$