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Current Position Analysis The following data were taken from the balance sheet of Nilo Company...

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Accounting

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 $400,500 $324,000
Marketable securities 463,800 364,500
Accounts and notes receivable (net) 189,700 121,500
Inventories 1,145,800 757,600
Prepaid expenses 590,200 484,400
Total current assets $2,790,000 $2,052,000
Current liabilities:
Accounts and notes payable
(short-term) $359,600 $378,000
Accrued liabilities 260,400 162,000
Total current liabilities $620,000 $540,000

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 $ $
2. Current ratio
3. Quick ratio

b. The liquidity of Nilo has from the preceding year to the current year. The working capital, current ratio, and quick ratio have all . Most of these changes are the result of an in current assets relative to current liabilities.

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