Simom Company's year-end balance sheets follow.
Exercise 13-7 Analyzing liquidity LO P3 Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant asueta, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 28,999 84,048 106,731 9,152 262.579 $.491,509 $ 33,558 $ 34,610 59,320 47,070 79,955 50,636 9,076 3,923 241,806 213,361 $ 423,715 5 349,600 $ 124,833 $ 70,176 $ 46,609 90,556 162,500 113,620 $ 491,509 97,454 75,716 162,500 162,500 93,585 64,275 3423,715 5 349,600 (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 28 Compute the current ratio for each of the three years. Current Ratio nework i Saved Common stock, $10 par value Retained earnings Total liabilities and equity 162,500 113,620 $ 491,509 162,500 162,500 93,585 64,775 $ 423, 715 $ 349,600 (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. Choose Numerator: Current Ratio 1 Choose Denominator: Current liabilities Current assets Current Ratio > = Current ratio 11 Current Yr: 1 Yr Ago: 2 Yrs Ago: to 1 II / to 1 to 1 Required 1A Required 1B Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 2A Required 2B Did the current ratio improve or worsen over the three year period? Current ratio Im ed Worsened (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 18 Required 2A Required 28 Compute the acid-test ratio for each of the three years. Acid-test ratio Choose Numerator: Choose Denominator: Acid-Test Ratio Acid-test ratio Current Yr: 1 Yr Ago: 2 Yrs Ago: Oto 1 ##### +++ Oto 1 Oto 1 1 (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 28 Did the acid-test ratio improve or worsen over the three year period? Acid-test ratio
