Current Position Analysis

The following data were taken from the balance sheet of Mossberg Company:

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

			2014				2013
1. Working capital	$			$
2. Current ratio
3. Quick ratio

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

Dec. 31, 2014 Dec. 31, 2013 Cash Marketable securities Accounts and notes receivable (net) Inventories Prepaid expenses $ 700,000 800,000 920,000 600,000 500,000 3,520,000 $ 800,000 300,000 $1,100,000 600,000 620,000 780,000 500,000 500,000 3,000,000 S 750,000 250,000 1,000,000 Total current assets Accounts and notes payable (short-term) Accrued liabilities Total current liabilities