Chapter 14, Problem 14.6EX

a. (1) Current year working capital. $1,090,000

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	$ 391,000	$ 300,000
Marketable securities	515,000	354,000
Accounts and notes receivable (net)	634,000	426,000
Inventories	368,000	222,000
Prepaid expenses	182,000	138,000
Total current assets	$ 2,090,000	$1,440,000
Current liabilities:
Accounts and notes payable (short-term)	$ 725,000	$ 600,000
Accrued liabilities	275,000	300,000
Total current liabilities	$ 1,000,000	$ 900,000

a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.

b. What conclusions can be drawn from these data as to the company’s ability to meet its currently maturing debts?