Exercise 13-7 Analyzing liquidity LO P3 Simon Company's year-end balance sheets follow. 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 $ 35,933 106,207 129,646 11,343 319, 877 $ 603,006 $ 40,755 $ 42,466 74,232 56,060 97,131 59,704 10,698 4,672 297, 017 261,798 $ 519,833 $ 424,700 $ 151,650 $ 87,852 $ 54,939 111,098 162,500 177,758 $ 603,006 119,562 91,043 162,500 162,500 149,919 116,218 $ 519,833 $ 424,700 (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 (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. (2-6) 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 2B Compute the current ratio for each of the three years. Current Ratio Choose Numerator: / Choose Denominator: 11 11 11 Current Yr: 1 Yr Ago: 2 Yrs Ago: Current Ratio Current ratio to 1 to 1 to 1 Improved Worsened (1-a) Compute the current ratio for each of the three years. (1-6) 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 (2-6) 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 fost ratio Choose Numerator: Choose Denominator Acid. Acidit Current Yr 1 Yr Ago: 2 Yrs Ago: (Required 10 Required 20 > (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 peric Complete this question by entering your answers in the tabs belo Required 1A Required 1B Required 2A Required 2B Did the acid-test ratio improve or worsen over the three year period? Acid-test ratio
