Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

need assistance with this problem Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $

need assistance with this problem

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 33, 603 $ 40,064 $ 40,919 Accounts receivable, net 98, 365 68, 737 54, 559 Merchandise inventory 124, 899 92, 648 58, 692 Prepaid expenses 10, 821 10,620 4, 684 Plant assets, net 301, 849 278, 911 258, 646 Total assets $ 569, 537 $ 490,980 $ 417, 500 Liabilities and Equity Accounts payable $ 144, 651 $ 83, 805 $ 55, 110 Long-term notes payable secured by mortgages on plant assets 109, 214 114 , 055 89 , 499 Common stock, $10 par value 162,500 162,500 162,500 Retained earnings 153, 172 130, 620 110, 391 Total liabilities and equity $ 569, 537 $ 490,980 $ 417, 500 (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?Required 1A Required 1B Required 2A Required 2B Compute the current ratio for each of the three years. Current Ratio Choose Numerator: 1 Choose Denominator: Current Ratio Current ratio Current Yr: to 1 1 Yr Ago: to 1 2 Yrs Ago: to 1Required 1A Required 1B Required 2A Required 2B Did the current ratio improve or worsen over the three year period? Current ratioRequired 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: = Acid-Test Ratio + + Acid-test ratio Current Yr: to 1 1 Yr Ago: to 1 2 Yrs Ago: to 1Required 1A Required 1B Required 2A Required 2B Did the acid-test ratio improve or worsen over the three year period? Acid-test ratio

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

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

Financial Accounting A User Perspective

Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry

6th Canadian Edition

470676604, 978-0470676608

Students also viewed these Accounting questions