Current Position Analysis

The following data were taken from the comparative balance sheet of Icon Living, Inc., for the years ended December 31, 20Y9 and December 31, 20Y8:

				Dec. 31, 20Y9			Dec. 31, 20Y8
Cash				$312,300			$228,000
Temporary investments				333,200			249,800
Accounts and notes receivable (net)				306,500			272,200
Inventories				428,400			337,500
Prepaid expenses				243,600			112,500
	Total current assets			$1,624,000			$1,200,000
Accounts payable				$324,800			$350,000
Accrued liabilities				235,200			150,000
	Total current liabilities			$560,000			$500,000

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		$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

declinedimproved

from 20Y8 to the 20Y9. The working capital, current ratio, and quick ratio have all

decreasedincreasedstayed the same

. Most of these changes are the result of

an increase in current assetsan increase in current liabilities

.