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Simon Company s year - end balance sheets follow. At December 3 1 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 3
Simon Companys yearend balance sheets follow.
At December Current Yr Yr Ago Yrs Ago
Assets
Cash $ $ $
Accounts receivable, net
Merchandise inventory
Prepaid expenses
Plant assets, net
Total assets $ $ $
Liabilities and Equity
Accounts payable $ $ $
Longterm notes payable secured by
mortgages on plant assets
Common stock, $ par value
Retained earnings
Total liabilities and equity $ $ $
a Compute the current ratio for each of the three years.
b Did the current ratio improve or worsen over the three year period?
a Compute the acidtest ratio for each of the three years.
b Did the acidtest ratio improve or worsen over the three year period?
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