of 5 Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. Current Year 1 Year Ago 2 Years Ago Book 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 Common stock, $10 par value Retained earnings Total liabilities and equity $ 31,439 89,298 115,712 9,922 286,495 $ 532,866 $ 36,749 66,241 84,133 9,936 262,308 $ 459,367 $ 36,412 49,540 54,891 4,046 230,411 $ 375,300 Hint Print $ 128,703 102,182 162,500 139,481 $ 532,866 $ 79,186 104,598 163,500 112,083 $ 459,367 $ 49,540 82,941 162,500 B0,319 $ 375,300 ferences For both the current year and one year ago, compute the following ratios: Exercise 13-7 (Algo) Analyzing liquidity LO P3 (1-a) Compute the current ratio for each of the three years. (1-1) 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? ve Draw till Exercise 13-7 (Algo) Analyzing liquidity LO P3 315 (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. bok Required 1A Required 1B Required 2A Required 2B nt Compute the current ratio for each of the three years. Current Ratio Denominator rint Numerator: Current Ratio Current ratio to 1 to 1 to 1 Current Year: 1 Year Ago: 2 Years Ago rences Required 1A Required 1B > 2 Total liabilities and equity $ 532,866 $ 459,367 $ 375,300 For both the current year and one year ago, compute the following ratios: 2 of 5 Exercise 13-7 (Algo) Analyzing liquidity LO P3 (1-a) Compute the current ratio for each of the three years. (1-1) 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? eBook Complete this question by entering your answers in the tabs below. Hint Required 1A Required 1B Required 2A Required 28 Print Did the current ratio improve or worsen over the three-year period? Current ratio References Exercise 13-7 (Algo) Analyzing liquidity LO P3 (1-a) Compute the current ratio for each of the three years. (4-6) Did the current ratio improve or worsen over the three-year period? 12-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-test ratio Numerator: Short-term investments Denominator Current Year: 1 Year Ago: 2 Years Ago: - Acid-Test Ratio Add-test ratio - to 1 to + to 1 71 pints (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? eBook Complete this question by entering your answers in the tabs below. Hint Required 1A Required 1B Required 2A Required 28 Did the acid-test ratio improve or worsen over the three-year period? Print Acid-test ratio References (Required 2A Required 21
