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Required information Skip to question [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Current Yr
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[The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow.
At December 31 | Current Yr | 1 Yr Ago | 2 Yrs Ago | |||||||
Assets | ||||||||||
Cash | $ | 24,202 | $ | 28,573 | $ | 29,472 | ||||
Accounts receivable, net | 70,145 | 49,012 | 38,899 | |||||||
Merchandise inventory | 88,194 | 66,729 | 42,699 | |||||||
Prepaid expenses | 7,638 | 7,352 | 3,407 | |||||||
Plant assets, net | 220,024 | 201,957 | 186,223 | |||||||
Total assets | $ | 410,203 | $ | 353,623 | $ | 300,700 | ||||
Liabilities and Equity | ||||||||||
Accounts payable | $ | 103,162 | $ | 57,969 | $ | 38,899 | ||||
Long-term notes payable | 75,576 | 82,960 | 66,455 | |||||||
Common stock, $10 par value | 162,500 | 163,500 | 162,500 | |||||||
Retained earnings | 68,965 | 49,194 | 32,846 | |||||||
Total liabilities and equity | $ | 410,203 | $ | 353,623 | $ | 300,700 | ||||
(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?
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