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:

a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio.

b. What conclusions can be drawn from these data?

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Dec. 31, 20Y9 Dec. 31, 20Y8 Cash $ 75,000 $ 50,000 Temporary investments 125,000 75,000 Accounts and notes receivable (net) 250,000 200,000 Inventories 425,000 305,000 Prepaid expenses 25,000 20,000 $ 900,000 $ 350,000 $ 650,000 $ 230,000 Total current assets Accounts payable Accrued liabilities 25,000 20,000 Total current liabilities $ 375,000 $ 250,000