1. Print Item

   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				$501,600			$403,200
   Marketable securities				580,800			453,600
   Accounts and notes receivable (net)				237,600			151,200
   Inventories				508,200			322,100
   Prepaid expenses				261,800			205,900
   	Total current assets			$2,090,000			$1,536,000
   Current liabilities:
   Accounts and notes payable
   	(short-term)			$319,000			$336,000
   Accrued liabilities				231,000			144,000
   	Total current liabilities			$550,000			$480,000

   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

   improveddeclinedimproved

   from the preceding year to the current year. The working capital, current ratio, and quick ratio have all

   increaseddecreasedincreased

   . Most of these changes are the result of an

   increasedecreaseincrease

   in current assets relative to current liabilities.