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 $ 30,811 90, 192 112,277 9,922 279, 015 $ 522,217 $ 37,095 $ 36,776 6 3,026 47,579 83,285 51,705 9,643 3,965 257,138 227,775 $ 450,187 $ 367,800 $ 132,633 $ 76,082 $ 48,550 95,231 162,500 131,853 $ 522,217 100,437 82,909 162,500 162,500 111,168 73,841 $ 450,187 $ 367,800 (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 current ratio for each of the three years. Current Ratio Choose Denominator: Choose Numerator: = 1 = Current Ratio Current ratio to 1 to 1 Current Yr: 1 Yr Ago: 2 Yrs Ago: to 1 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 $ 30,811 90, 192 112,277 9,922 279, 015 $ 522,217 $ 37,095 $ 36,776 63,026 47,579 83,285 51,705 9,643 3,965 257,138 227,775 $ 450,187 $ 367,800 $ 132,633 $ 76,082 $ 48,550 95,231 162,500 131,853 $ 522,217 100,437 82,909 162,500 162,500 111,168 73,841 $ 450,187 $ 367,800 (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 Did the current ratio improve or worsen over the three year period? Current ratio 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 $ 30,811 90,192 112,277 9,922 279,015 $ 522,217 $ 37,095 $ 36,776 63,026 47,579 83,285 51,705 9,643 3,965 257,138 227,775 $ 450,187 $ 367,800 $ 132,633 $ 76,082 $ 48,550 95,231 162,500 131,853 $ 522,217 100,437 82,909 162,500 162,500 111,168 73,841 $ 450,187 $ 367,800 (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: 1 Choose Denominator: + = Acid-Test Ratio Acid-test ratio to 1 to 1 + + Current Yr: 1 Yr Ago: 2 Yrs Ago: + + + + to 1 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 $ 30,811 90,192 112,277 9,922 279,015 $ 522,217 $ 37,095 $ 36,776 63,026 47,579 83,285 51,705 9,643 3,965 257,138 227,775 $ 450,187 $ 367,800 $ 132,633 $ 76,082 $ 48,550 95,231 162,500 131,853 $ 522,217 100,437 162,500 111,168 $ 450,187 82,909 162,500 73,841 $ 367,800 (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 Did the acid-test ratio improve or worsen over the three year period? Acid-test ratio
