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

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Accounting

Current Position Analysis

The following data were taken from the balance sheet of Albertini Company at the end of two recent fiscal years:

Current Year Previous Year
Current assets:
Cash $372,400
Marketable securities 425,900
Accounts and notes receivable (net) 531,700
Inventories 343,200
Prepaid expenses 146,800
Total current assets $1,820,000
Current liabilities:
Accounts and notes payable (short-term) $404,000
Accrued liabilities 296,000
Total current liabilities $700,000

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 Albertini has (improved or declined) from the preceding year to the current year. The working capital, current ratio, and quick ratio have all (increased or decreased). Most of these changes are the result of an (increase or decrease) in current assets relative to current liabilities.

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