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. At December 31 Current Year 1 Year Ago 2 Years Ago Assets Cash $ 25,332 $ 29,901 $ 29,339 Accounts receivable, net 73,421 50,295 41,114 Merchandise inventory 88,692 67,804 43,370 Prepaid expenses 7,998 7,773 3,393 Plant assets, net 225,498 207, 107 185, 184 Total assets $ 420,941 $ 362,880 $ 302,400 Liabilities and Equity Accounts payable $ 106,911 $ 59,487 $ 40,715 Long-term notes payable 78,346 80,959 66,162 Common stock, $10 par value 163,500 162,500 163,500 Retained earnings 72,184 59,934 32,023 Total liabilities and equity $ 420,941 $ 362,880 $ 302,400 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-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? (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 2B Compute the current ratio for each of the three years. Current Ratio Denominator: Numerator: IT Current Ratio Current ratio 1 1 1 Current Year: 1 Year Ago: 2 Years Ago: = = to 1 to 1 to 1 Required 1A Required 18 > AVDU AVAJU AU ... - PAU puc Retained earnings Total liabilities and equity 72,184 $ 420,941 59,934 $ 362,880 32,023 $ 302,400 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-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 2B Did the current ratio improve or worsen over the three-year period? Current 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 acid-test ratio for each of the three years. Acid-test ratio nces Numerator Denominator - Acid Acid Short-term investments Current Year: 1 Year Ago: 2 Years Ago Required 18 Required 28 > 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? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Did the acid-test ratio improve or worsen over the three-year period? Acid-test ratio
