Valley Forge Corporation reported the following current accounts at December 31, 2011 (amounts in thousands):
Cash................................................ $1,500
Receivables...................................... 5,900
Inventory......................................... 2,700
Prepaid expenses............................. 1,000
Accounts payable ............................ 2,600
Unearned revenue............................ 1,600
Accrued expenses payable ............... 1,900

During January 2012, Valley Forge completed these selected transactions:
Sold services on account, $9,000
Depreciation expense, $400
Paid for expenses, $7,300
Collected from customers on account, $8,100
Accrued expenses, $500
Paid on account, $1,400
Used up prepaid expenses, $700

Compute Valley Forge’s net working capital and current ratio at December 31, 2011, and again at January 31, 2012. Did the net working capital and current ratio improve or deteriorate during January 2012? Comment on the level of the company’s net working capital and current ratio.