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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				$414,000			$320,000
Marketable securities				496,800			336,000
Accounts and notes receivable (net)				619,200			464,000
Inventories				351,900			272,000
Prepaid expenses				188,100			208,000
	Total current assets			$2,070,000			$1,600,000
Current liabilities:
Accounts and notes payable (short-term)				$675,000			$600,000
Accrued liabilities				225,000			200,000
	Total current liabilities			$900,000			$800,000

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	$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: (inproved or declined)

from the preceding year to the current year. The working capital, current ratio, and quick ratio have all (increaed or decreased)

Most of these changes are the result of an (increase decrease) in current assets relative to current liabilities.