Exercise 13-7 Analyzing liquidity LO P3 Simon Company's year-end balance sheets follow. 1 Yr Ago 2 Yrs Ago At December 31 Assets $ 29,202 86,346 107.488 9.594 267,315 $ 499,945 $ 35,513 59,131 82,125 8,779 245,439 $430,987 $34.500 4 7, 409 49,485 3,990 220, 216 $ 355,600 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 $ 126,976 $ 71,380 $ 47,878 92,110 162,500 118,359 $ 499,945 98,136 77,802 162,500 162,500 98,971 67,420 $430,987 $ 355,600 (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 18 Required 2A Required 28 Compute the current ratio for each of the three years. Current Ratio / Choose Denominator: Choose Numerator - Current Ratio L Current Yr: 1 Yr Ago: 2 Yrs Ago: L Hequired 18 ) 9,594 267,315 $ 499,945 245, 439 220,216 $ 430,987 $ 355,600 $ 126,976 $ 71,380 $ 47,878 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 92, 110 162,500 118,359 $ 499,945 98,136 77, 802 162.500 162,500 98,971 67, 420 $ 430,987 $ 355,600 (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 28 Did the current ratio improve or worsen over the three year period? Current ratio Current TE1 TE2 Treo 329,202 36.346 35.51336,500 59.131 47,409 $ 499,945 $ 430.987 $ 355,600 $126.976 $ 71,380 $ 47,878 Long-tam not payable secured by Common stock, 510 par value 98,136 162.500 91,971 77,302 162,500 67, 420 118,35 total liabilities and equity (1-a) Compute the current ratio for each of the three years (-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 A Required 18 Required 2A Required 25 Compute the acid-test ratio for each of the three years. Acid-stratio Choose Numerator Choose Denominator 1 Yr Ago 2 Yrs Aga: (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 13 Required 2A Required 2B Did the acid-test ratio improve or worsen over the three year period? Acid-test ratio Required 2A Required 20 Prey 1 of 1 Next >