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Simons Company's year-end balance sheet follow. Current Yr 1 Yr Ago 2 Yrs Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid
Simons Company's year-end balance sheet 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 $ 36,194 99,809 124,211 11, 203 324,176 $ 595,593 $ 42,308 $ 42,359 71,882 58, 784 93,087 60,757 10,998 4,659 295, 167 270,941 $ 513,442 $ 436,600 $ 146, 820 $ 88,507 $ 58,784 111,971 162,500 174, 302 $ 595,593 114,549 93,594 ,162,500 162,500 147,886 121,722 $ 513,442 $ 436,600 (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: 7 Choose Denominator: Current Ratio Current ratio O to 1 Current Yr: 1 Yr Ago: 2 Yrs Ago: Oto 1 0 to 1 Required 18 > 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: Acid.Test Ratio . Acid-test ratio Current Yr: + Olto 1 1 Yr Ago: 2 Yrs Ago: Step by Step Solution
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