Current position analysis

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

Line Item Description	Current Year	Previous Year
Current assets:
Cash	$629,300	$529,200
Marketable securities	728,600	595,400
Accounts and notes receivable (net)	298,100	198,400
Inventories	380,200	230,600
Prepaid expenses	195,800	147,400
Total current assets	$2,232,000	$1,701,000
Current liabilities:
Accounts and notes payable (short-term)	$417,600	$441,000
Accrued liabilities	302,400	189,000
Total current liabilities	$720,000	$630,000

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

Line Item Description	Current Year	Previous Year
1. Working capital	$fill in the blank 1	$fill in the blank 2
2. Current ratio	fill in the blank 3	fill in the blank 4
3. Quick ratio	fill in the blank 5	fill in the blank 6

b. The liquidity of Nilo has fill in the blank 1 of 3

improveddeclined

from the preceding year to the current year. The working capital, current ratio, and quick ratio have all fill in the blank 2 of 3

increaseddecreased

. Most of these changes are the result of an fill in the blank 3 of 3

increasedecrease

in current assets relative to current liabilities.