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 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Current Year 1 Year Ago 2 Years Ago $ 38,513 68,759 $ 33,946 96,458 123,703 10,825 299,148 $ 564,080 92,660 10,416 275,928 $ 486,276 Total assets Liabilities and Equity Accounts payable $ 140,456 Long-term notes payable Common stock, $10 par value Retained earnings 106,047 162,500 155,077 Total liabilities and equity $ 564,080 $ 486,276 $ 83,002 111,843 163,500 127,931 $ 41,755 55,128 59,891 4,458 252,268 $ 413,500 $ 52,945 89,556 163,500 107,499 $ 413,500 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 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 < Required 1A Required 1B > Prov 1 of 1 Next ! 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 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 $ 33,946 96,458 $ 38,513 68,759 123,703 10,825 299,148 $ 564,080 106,047 162,500 155,077 $ 140,456 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity 92,660 10,416 275,928 $ 486,276 $ 83,002 111,843 163,500 127,931 $ 564,080 $ 486,276 For both the current year and one year ago, compute the following ratios: $ 41,755 55,128 59,891 4,458 252,268 $ 413,500 $ 52,945 89,556 163,500 107,499 $ 413,500 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 Compute the acid-test ratio for each of the three years. Numerator: + Short-term investments + Current Year: + + 1 Year Ago: + 2 Years Ago: + Acid-test ratio Denominator: 1 < Required 1B Required 2B > = Acid-Test R Acid-test ra to to to