$ 25,950 75,947 92,708 8,193 228,403 $ 431,201 $ 30,035 $ 30,667 50,480 42,129 69,457 43,543 7,806 3,442 213,947 193,119 $ 371,725 $ 312,900 Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 109,516 $ 60,937 $ 42,129 79,444 162,500 79,741 $ 431, 201 85,497 68,459 162,500 162,500 62,791 39,812 $ 371,725 $ 312,900 (1-a) Compute the current ratio for each of the three years. (1-b) Did the current ratio improve or worsen over the three year period? (2-a) Compute the acid-test ratio for each of the three years. (2-b) Did the acid-test ratio improve or worsen over the three year period? Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Compute the current ratio for each of the three years. Current Ratio = Choose Numerator: Current assets 1 $ 25,950 $ Choose Denominator: Current liabilities Current Ratio Current ratio to 0.24 1 Current Yr: 109,516 11 1 Yr Ago: $ 30,035 1 $ 60,937 = 11 0.49 $ $ to 1 to 1 2 Yrs Ago: $ 30,667 1 42,129 0.73 $ 25,950 75,947 92,708 8,193 228,403 $ 431, 201 $ 30,035 $ 30,667 50,480 42,129 69,457 43,543 7,806 3,442 213,947 193,119 $ 371,725 $ 312,900 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 109,516 $ 60,937 $ 42,129 79,444 162,500 79,741 $ 431, 201 85,497 68,459 162,500 162,500 62,791 39,812 $ 371,725 $ 312,900 (1-a) Compute the current ratio for each of the three years. (1-b) Did the current ratio improve or worsen over the three year period? (2-a) Compute the acid-test ratio for each of the three years. (2-b) Did the acid-test ratio improve or worsen over the three year period? Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Compute the acid-test ratio for each of the three years. Acid-test ratio Choose Numerator: Choose Denominator: Cash + Short-term investments + Current liabilities X 1 Accounts receivable, net X = $ 25,950 + IS 0 + S 109,516 X $ 75,947 X = Current Yr: : 1 Yr Ago: 2 Yrs Ago: Acid-Test Ratio Acid-test ratio to 1.78 1 to 0 1 to 0 1 + + + + + = Current Yr 1 Yr Ago 2 Yrs Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 25,950 75,947 92,708 8,193 228,403 $ 431, 201 $ 30,035 $ 30,667 50,480 42,129 69,457 43,543 7,806 3,442 213,947 193,119 $ 371,725 $ 312,900 $ 109,516 $ 60,937 $ 42,129 79,444 162,500 79,741 $ 431, 201 85,497 68,459 162,500 162,500 62,791 39,812 $ 371,725 $ 312,900 (1-a) Compute the current ratio for each of the three years. (1-b) Did the current ratio improve or worsen over the three year period? (2-a) Compute the acid-test ratio for each of the three years. (2-b) Did the acid-test ratio improve or worsen over the three year period? Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Did the acid-test ratio improve or worsen over the three year period? Acid-test ratio
