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Required information [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
Required information [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 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 $ 33,897 97,281 118,679 10,488 302,916 $ 563,261 $ 40,011 67,300 89,830 10,401 278,028 $ 485,570 $ 40,877 53,413 59,218 4,633 254,759 $ 412,900 $ 143,057 103,775 162,500 153, 929 $ 563,261 $ 83,703 110,564 163,500 127,803 $ 485,570 $ 52,868 92,163 163,500 104,369 $ 412,900 For both the current year and one year ago, compute the following ratios: (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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