Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago $ 25, e53 76,354 96,942 8,567 239,842 At December 31 Assets
Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago $ 25, e53 76,354 96,942 8,567 239,842 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 $ 31,096 $ 31,451 53,361 43,206 69,815 44,201 7,766 3,530 215,340 198,512 $ 377,378 $ 320,900 $ 437,758 $ 196,822 $ 64,415 $ 43,630 79, 830 162,500 88,606 $ 437,758 86,797 73,046 162,580 162,500 63,666 41,724 $ 377,378 $ 320,900 (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 18 Required 2A Required 28 Compute the current ratio for each of the three years. Current Ratio 1 Choose Denominator: Choose Numerator: = Current Ratio = Current ratio to 1 Current Yr: 1 Yr Ago: 2 Yrs Ago: to 1 1 to 1 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: Acid-Test Ratio Acid-test ratio + + + / = Current Yr: + 1 0 to 1 1 oto 1 1 Yr Ago: 2 Yrs Ago: . + + + + 1 11 = 0 to 1
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started