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: | | | | | |
| Cash | $425,600 | | | $317,200 | |
| Marketable securities | 492,800 | | | 356,900 | |
| Accounts and notes receivable(net) | 201,600 | | | 118,900 | |
| Inventories | 646,800 | | | 372,100 | |
| Prepaid expenses | 333,200 | | | 237,900 | |
| Total current assets | $2,100,000 | | | $1,403,000 | |
| Current liabilities: | | | | | |
| Accounts and notes payable | | | |
| (short-term) | $406,000 | | | $427,000 | |
| Accrued liabilities | 294,000 | | | 183,000 | |
| Total current liabilities | $700,000 | | | $610,000 | |
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 Nilohas from the preceding year to the current year.The working capital, current ratio, and quick ratio haveall . Most of these changes are the result ofan in current assets relative to currentliabilities.
