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Simon Companys year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 29,554 $ 34,899 $ 37,080
Simon Companys year-end balance sheets follow.
At December 31 | Current Yr | 1 Yr Ago | 2 Yrs Ago | |||||||
Assets | ||||||||||
Cash | $ | 29,554 | $ | 34,899 | $ | 37,080 | ||||
Accounts receivable, net | 87,405 | 62,306 | 48,470 | |||||||
Merchandise inventory | 113,192 | 83,964 | 53,185 | |||||||
Prepaid expenses | 9,420 | 9,439 | 3,958 | |||||||
Plant assets, net | 271,571 | 250,032 | 224,507 | |||||||
Total assets | $ | 511,142 | $ | 440,640 | $ | 367,200 | ||||
Liabilities and Equity | ||||||||||
Accounts payable | $ | 131,093 | $ | 75,213 | $ | 49,440 | ||||
Long-term notes payable secured by mortgages on plant assets | 96,095 | 104,388 | 80,340 | |||||||
Common stock, $10 par value | 162,500 | 162,500 | 162,500 | |||||||
Retained earnings | 121,454 | 98,539 | 74,920 | |||||||
Total liabilities and equity | $ | 511,142 | $ | 440,640 | $ | 367,200 | ||||
(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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