Simon Company's year-end balance sheets follow. At December 31 Assets Current Year 1 Year Ago 2...
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Simon Company's year-end balance sheets follow. At December 31 Assets Current Year 1 Year Ago 2 Years Ago Cash Accounts receivable, net $ 34,375 99,630 $ 40,993 69,607 Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable 124,001 11,070 319,442 $ 588,518 111,748 163,500 166,729 $ 588,518 96,674 10,761 289,308 $ 507,343 $ 83,169 115,522 162,500 146,152 $ 507,343 $ 41,027 55,808 60,036 4,697 257,032 $ 418,600 $ 54,703 91,585 162,500 109,812 $ 418,600 $ 146,541 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity For both the current year and one year ago, compute the following ratios: Exercise 13-7 (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? 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. Current Year: 1 Year Ago: 2 Years Ago: + + ++ Numerator: Short-term investments Acid-test ratio Denominator: + Acid-Test Ratio Acid-test ratio = to 11 = to 1 to 1 Simon Company's year-end balance sheets follow. At December 31 Assets Current Year 1 Year Ago 2 Years Ago Cash Accounts receivable, net $ 34,375 99,630 $ 40,993 69,607 Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable 124,001 11,070 319,442 $ 588,518 111,748 163,500 166,729 $ 588,518 96,674 10,761 289,308 $ 507,343 $ 83,169 115,522 162,500 146,152 $ 507,343 $ 41,027 55,808 60,036 4,697 257,032 $ 418,600 $ 54,703 91,585 162,500 109,812 $ 418,600 $ 146,541 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity For both the current year and one year ago, compute the following ratios: Exercise 13-7 (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? 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. Current Year: 1 Year Ago: 2 Years Ago: + + ++ Numerator: Short-term investments Acid-test ratio Denominator: + Acid-Test Ratio Acid-test ratio = to 11 = to 1 to 1
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Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
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