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Required Information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable,
Required Information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Current Year 1 Year Ago 2 Years Ago $ 25,835 77,171 97,989 8,659 237,170 $ 446,824 84,843 163,500 84,997 $ 31,124 52,848 72,686 8,089 220,446 $ 385,193 $ 113,484 Long-term notes payable. Common stock, $10 par value Retained earnings $ 65,098 85,937 162,500 71,658 Total liabilities and equity $ 446,824 $ 385,193 $30,221 41,956 46,028 3,427 193,068 $ 314,700 $ 40,710 69,549 162,500 41,941 For both the current year and one year ago, compute the following ratios: $ 314,700 (1-8) 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 Compute the current ratio for each of the three years. Current Year: 1 Year Ago: 2 Years Ago: Numerator: Current Ratio Denominator: Current Ratio Current ratio to 1 to 1 to 1
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