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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

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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 Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity Current Yr $ 29,389 82,648 104,975 9,558 266,616 $ 493, 186 1 Yr Ago 2 Yrs Ago $ 34,353 $ 35,777 59,522 45,365 77,082 49,304 9,018 3,936 245,185 219,918 $ 425,160 $ 354,300 $ 125, 259 91,792 162,500 113,635 $ 493, 186 $ 73,2897 $ 46,300 95,831 79,083 162,500 162,500 93,540 66,417 $425, 160 $ 354,300 (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? & Answer is complete but not entirely correct. Camnlete this nuectinn hv anterinn vaur aneware in the tahe helnw. Prev 1 of 9 1 of 9 Next > Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion (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? Answer is complete but not entirely correct. 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. Acid-test ratio Choose Numerator: Short-term investments + Cash $ Current receivables 29,389 Acid-Test Ratio Acid-test ratio 0.25 $ 9,558 X Current Yr: 1 Yr Ago: 2 Yrs Ago: Choose Denominator: Current liabilities 493,186 425,160 354,300 O 82,648 59,522 45,365 = - - = - $ 0.24 34,353 35,777 + + 9,018 3,936 $ + 0.24 Prev 1 of 9 Next > * Answer is complete but not entirely correct. 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 assets 493,186 % I Current Ratio Current ratio Current Ratio Choose Denominator: Current liabilities $ 493,186 * = $ 425,160 = $ 354,300 = Current Yr: 1 Yr Ago: 2 Yrs Ago: 1.00 1.00 1 425,160 354,300 1.00 ROWA Required 1B > Prev 1 of 9 Next >

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