Current Position Analysis

The following data were taken from the comparative balance sheet of Osborn Sisters Company for the years ended December 31, 20Y9 and December 31, 20Y8:

				Dec. 31, 20Y9			Dec. 31, 20Y8
Cash				$452,000			$350,200
Temporary investments				482,300			383,600
Accounts and notes receivable (net)				443,700			418,200
Inventories				620,100			518,400
Prepaid expenses				439,900			201,600
	Total current assets			$2,438,000			$1,872,000
Accounts payable				$307,400			$336,000
Accrued liabilities				222,600			144,000
	Total current liabilities			$530,000			$480,000

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

	20Y9		20Y8
Working capital		$		$
Current ratio
Quick ratio

b. The liquidity of Osborn Sisters Company has from 20Y8 to the 20Y9. The working capital, current ratio, and quick ratio have all . Most of these changes are the result of .