Question
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
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 Common stock, $10 par value Retained earnings $ 33,482 44,187 Current Year 1 Year Ago 2 Years Ago $ 33,461 56,817 78,144 18,523 237,175 $ 29,193 82, 145 105,347 9,218 254,476 $ 480,379 $123,203 87,602 $ 414,120 $ 69,286 98,105 162,500 84,229 163,500 106,074 Total liabilities and equity $ 480,379 $ 414,120 49,004 3,682 214,745 $ 345,100 $ 44,642 75,504. 163,500 61,454 $ 345,100 (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 Yr: 1 Yr Ago: 2 Yrs Ago: Numerator: Current Ratio Denominator: Current Ratio Current ratio to 1 to 1 to 1 Required 1B >
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