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