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$655,500 $546,000 Marketable securities759,000 614,300 Accounts and notes receivable (net)310,500 204,700 Inventories1,039,500 674,100 Prepaid expenses535,500 430,900 Total current assets$3,300,000 $2,470,000 Current liabilities: Accounts and notes payable (short-term)$435,000 $455,000 Accrued liabilities315,000 195,000 Total current liabilities$750,000 $650,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.

1. Previous Year =  $1,820,000, Current Year = $2,550,000

2. Previous Year = 3.80 times , Current Year = 4.40 times

3. Previous Year = 2.70 times,  Current Year = 3.00 times

Explanation:

working capital = current assets - current liabilities

working capital (Previous Year) = $2,470,000 - $650,000

                                                    = $1,820,000

working capital (Previous Year) = $3,300,000 - $750,000

                                                    = $2,550,000

Current ratio = current assets ÷ current liabilities

working capital (Previous Year) = $2,470,000 ÷ $650,000

                                                    = 3.80 times

working capital (Previous Year) = $3,300,000 ÷ $750,000

                                                    = 4.40 times

Quick ratio = (current assets - inventory) ÷ current liabilities

working capital (Previous Year) = ($2,470,000 - 674,100) ÷ $650,000

                                                    = 2.70 times

working capital (Previous Year) = ($3,300,000 - 1,039,500) ÷ $750,000

                                                    = 3.00 times

answer; ///soft drinks mixed with alcohol will speed up the absorption rate;

step 1: create a plan

step 2: inventory facility equipment/assets

step 3: create preventive maintenance procedures

step 4: create preventive maintenance schedules

step 5: train your maintenanceteam

step 6: analyze – adjust - improve

or

step 1 – pm procedure design: doing the effective things

step 2 – pm procedure scheduling: efficient use of people and resources

step 3 – pm lubrication engineering

step 4 – pm training: back on the chain gang

step 5 – pm program management plan

step 6 – communicate, communicate, communicate