Question
Required information [The following information applies to the questions displayed below] Simon Company's year-end balance sheets follow. At December 31 Assets Current Year 1
Required information [The following information applies to the questions displayed below] Simon Company's year-end balance sheets follow. At December 31 Assets Current Year 1 Year Ago 2 Years Ago Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable $ 30,287 88,676 112,619 9,853 282,375 $ 35,764 62,586 83,539 9,388 260,283 $ 451,568 $ 74,787 104,897 $ 523,810 Long-term notes payable Common stock, $10 par value $ 129,124 98,476 162,500 133,710 108,376 Total liabilities and equity $ 523,810 $ 451,560 Retained earnings 163,500 For both the current year and one year ago, compute the following ratios: $ 37,254 49,175 53,435 4,222 232,214 $ 376,300 $ 49,672 81,499 162,500 82,629 $ 376,300 (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 2B 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 0 to 1 0 to 1 0 to 1 A
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