Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Current Yr Simon Company's year-end balance sheets follow, At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets

image text in transcribed
image text in transcribed
Current Yr Simon Company's year-end balance sheets follow, 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 $ 31,161 99,315 110, 181 9,836 281, 434 $ 522,927 1 Yr Ago 2 Yrs Ago $ 34,982 $ 37,191 63,112 47,643 82,564 51,776 9,183 3,970 260,958 227,720 $ 450,799 $ 368,300 $ 74,661 I 48,129 $ 131,511 97,327 162,500 131,589 $ 522,927 104,721 80,580 162,500 162,500 108,917 77,091 $ 450,799 $ 368,300 (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. 12-b) Did the acid-test ratio improve or worsen over the three year period? Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 2A Required 28 Compute the acld-test ratio for each of the three years Acid-test ratio Choose Numerator: Choose Denominator Acid Test Ratio Retained earnings Total liabilities and equity 131,589 $ 522,927 108,917 77,091 $ 450,799 $ 368,300 (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. 12-b) Did the acid-test ratio improve or worsen over the three year period? Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 2A Required 28 Compute the acid-test ratio for each of the three years. Acid-test ratio Choose Denominator: Current assets Choose Numeratori + Current abilities Acid-Test Ratio Acid-test ratio O to 1 Current Yr: 1 Yr Ago: 2 Yrs Ago Oto 1 O to 1

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

No Nonsense Project Auditing A Practical Guide For The PMO

Authors: Lisa Nash

1st Edition

0993403522, 978-0993403521

More Books

Students also viewed these Accounting questions

Question

What strategies might you use to support learning in English?

Answered: 1 week ago

Question

Explain the various techniques of Management Development.

Answered: 1 week ago

Question

1. Describe the factors that lead to productive conflict

Answered: 1 week ago