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

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Finance

Current Position Analysis
The following data were taken from the balance sheet of NiloCompany at the end of two recent fiscal years:
Current Year Previous Year
Current assets:
Â Â Cash $334,400 $249,600
Â Â Marketable securities 387,200 280,800
Â Â Accounts and notes receivable(net) 158,400 93,600
Â Â Inventories 798,600 585,600
Â Â Prepaid expenses 411,400 374,400
Â Â Total current assets $2,090,000 $1,584,000
Current liabilities:
Â Â Accounts and notes payable
Â Â (short-term) $319,000 $336,000
Â Â Accrued liabilities 231,000 144,000
Â Â Total current liabilities $550,000 $480,000
a. Determine for each year (1) the workingcapital, (2) the current ratio, and (3) the quick ratio. Roundratios to one decimal place.
Current Year Previous Year
1. Working capital $ $
2. Current ratio
3. Quick ratio
b. The liquidity of NilohasÂ Â Â from the preceding year to the current year.The working capital, current ratio, and quick ratio haveallÂ Â . Most of these changes are the result ofanÂ Â Â in current assets relative to currentliabilities.

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Working Capital for the Current Year Working Capital for the Current Year Total current assets Total current liabilities 2090000 550000 1540000 Working Capital for the Previous Year Working See Answer

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Current Year

Previous Year

1. Working capital

2. Current ratio

3. Quick ratio

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	Current Year		Previous Year
Current assets:
Â Â Cash	$334,400			$249,600
Â Â Marketable securities	387,200			280,800
Â Â Accounts and notes receivable(net)	158,400			93,600
Â Â Inventories	798,600			585,600
Â Â Prepaid expenses	411,400			374,400
	Â Â Total current assets	$2,090,000			$1,584,000
Current liabilities:
Â Â Accounts and notes payable
	Â Â (short-term)	$319,000			$336,000
Â Â Accrued liabilities	231,000			144,000
	Â Â Total current liabilities	$550,000			$480,000