Simon Companys year-end balance sheets follow.

At December 31	Current Yr				1 Yr Ago			2 Yrs Ago
Assets
Cash		$	32,868		$	38,420		$	41,246
Accounts receivable, net			98,149			68,593			53,906
Merchandise inventory			120,984			89,744			59,746
Prepaid expenses			10,478			9,983			4,447
Plant assets, net			300,237			278,360			253,155
Total assets		$	562,716		$	485,100		$	412,500
Liabilities and Equity
Accounts payable		$	135,913		$	80,342		$	56,084
Long-term notes payable secured by mortgages on plant assets			107,906			111,573			92,986
Common stock, $10 par value			162,500			162,500			162,500
Retained earnings			156,397			130,685			100,930
Total liabilities and equity		$	562,716		$	485,100		$	412,500

(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?

Common stock, $10 par value Retained earnings Total liabilities and equity 162,500 156,397 $ 562,716 162,500 162,500 130,685 100,930 $ 485,100 $ 412,500 (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. Acid-test ratio Choose Numerator: Choose Denominator: + Current Yr. 1 Yr Ago: 2 Yrs Ago: = Acid-Test Ratio Acid-test ratio = 0 to 1 0 to 1 0 to 1 MacBook Pro C G Search or type URL * 3 $4 1 % 5 6 & 7 * 00 8 C 9 ) 0 V E R T Y U 1 0 D F G H J L C B N M Total liabilities and equity $ 562,716 $ 485,100 $ 412,500 3 points (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? eBook Complete this question by entering your answers in the tabs below. Hint Required 1A Required 18 Required 2A Required 2B Print Compute the curent ratio for each of the three years. References Current Ratio Choose Numerator / Choose Denominator: Current Yr: 1 Yr Ago: 2 Yrs Ago: = Current Ratio Current ratio 0 to 1 0 to 1 0 to 1 Required 1A Required 1B > Mc Graw Hill MacBook Pro C ! G Search or type URL * 2 #3 * $ 4 % 5 & * 6 7 8 9 W E R T Y U O S D F G X V B 2