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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
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 Current Year 1 Year Ago 2 Years Ago $ 35,899 109,408 134,863 11,799 335,301 $ 627,270 114,389 163,500 190,067 Accounts payable $ 159,314 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity $ 43,260 74,948 102,040 11,242 309,260 $ 540,750 $ 92,301 123,129 163,500 161,820 $ 627,270 $ 540,750 For both the current year and one year ago, compute the following ratios: $ 43,746 57,172 62,125 4,716 269,741 $ 437,500 $ 56,595 96,688 162,500 121,717 $ 437,500 Exercise 17-7 (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?
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