Answered step by step
Verified Expert Solution
Question
1 Approved Answer
[The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. Current Year 1 Year Ago 2 Years Ago At December
[The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. Current Year 1 Year Ago 2 Years 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 Common stock, $10 par value Retained earnings Total liabilities and equity $ 26,742 77,506 96,474 8,612 243,916 $ 453, 250 $ 31,259 53,609 73,731 8,041 224,093 $ 390,733 $ 32,235 43,849 47,171 3,546 202,099 $ 328,900 $ 112,859 86,915 162,500 90,976 $ 453,250 $ 64,713 87,173 163,500 75, 347 $ 390,733 $ 42,547 71,233 162,500 52,620 $ 328,900 For both the current year and one year ago, compute the following ratios: Exercise 13-7 (Algo) Analyzing liquidity LO P3 (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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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