Current Position Analysis

The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years:

				Current Year			Previous Year
Current assets:
Cash				$681,700			$571,200
Marketable securities				789,400			642,600
Accounts and notes receivable (net)				322,900			214,200
Inventories				1,029,600			705,200
Prepaid expenses				530,400			450,800
	Total current assets			$3,354,000			$2,584,000
Current liabilities:
Accounts and notes payable
	(short-term)			$452,400			$476,000
Accrued liabilities				327,600			204,000
	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	$			$
2. Current ratio
3. Quick ratio

b. The liquidity of Nilo 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.