Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 32,125 89,492 112,519 9,743 284,753 $ 528,632 $ 36,093 $ 37,597 63,800 52,154 84,308 55,561 9,379 4,177 262,137 234,111 $ 455,717 $ 383,600 $ 131,629 $ 77,016 $ 50,635 98,389 162,500 136,114 $ 528,632 101,670 86,471 162,500 162,500 114,531 83,994 $ 455,717 $ 383,600 (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? Required 1A Required 1B Required 2A Required 2B Compute the current ratio for each of the three years. Current Ratio Choose Numerator: Choose Denominator: = / 11 Current Yr: 1 Yr Ago: 2 Yrs Ago: = Current Ratio Current ratio to 1 to 1 to 1 Required 1A Required 1B Required 2A Required 2B Did the current ratio improve or worsen over the three year period? Current ratio Required 1A Required 1B Required 2A Required 2B Compute the acid-test ratio for each of the three years. Acid-test ratio Choose Numerator: 1 Choose Denominator: + 1 Current Yr: 1 Yr Ago: 2 Yrs Ago: 11111111 Acid-Test Ratio = Acid-test ratio to 1 to 1 to 1 + + 1 + + Required 1A Required 1B Required 2A Required 2B Did the acid-test ratio improve or worsen over the three year period? Acid-test ratio |