exercise 13-7 analyzing liquidity LO P3

Exercise 13-7 Analyzing liquidity LO P3 Simon Company's year-end balance sheets follow. Current Yr1 Yr Ago 2 Yrs Ago 27,952 $ 32,343 $ 34,035 157,75645,843 100,830 7 6,320 50,810 38,663 3,897 237,459 216, 215 $ 412,541 $ 350,800 IWO OWN 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 478.548 $ 69,719 $ 45, 843 067 2,500 09,014 $ 478,548 92,987 79,077 162,500 162,500 87,335 63,380 $ 412,541 $ 350,800 (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? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Total liabilities and equity 0,340 412,34 (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? 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. Choose Numerator: Current Ratio Choose Denominator: Current liabilities Current Ratio Current assets nt ratio Current Yr: 1 Yr Ago: 2 Yrs Ago: Required 1A Required 1B >