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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