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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
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 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 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity $ 29,811 86,401 108,633 9,224 261,295 $ 495,364 $ 125,813 93,128 163,500 112,923 $ 33,821 60,981 79,002 9,147 244,087 $ 427,038 $ 72,891 97,237 163,500 93,410 $ 495,364 $ 427,038 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? $ 33,520 46,062 48,570 3,762 213,586 $ 345,500 $ 44,694 77,119 163,500 60,187 $ 345,500
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