The following data were taken from the balance sheet of Nilo Company at the end...
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Accounting
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
$303,600
$229,600
Marketable securities
351,600
258,300
Accounts and notes receivable (net)
143,800
86,100
Inventories
868,600
650,300
Prepaid expenses
447,400
415,700
Total current assets
$2,115,000
$1,640,000
Current liabilities:
Accounts and notes payable
(short-term)
$272,600
$287,000
Accrued liabilities
197,400
123,000
Total current liabilities
$470,000
$410,000
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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