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Use the following information for the Exercises below. ( Algo ) Skip to question [ The following information applies to the questions displayed below. ]
Use the following information for the Exercises below. Algo
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The following information applies to the questions displayed below.
Simon Company's yearend balance sheets follow.
At December Current Year Year Ago Years Ago
Assets
Cash $ $ $
Accounts receivable, net
Merchandise inventory
Prepaid expenses
Plant assets, net
Total assets $ $ $
Liabilities and Equity
Accounts payable $ $ $
Longterm notes payable
Common stock, $ par value
Retained earnings
Total liabilities and equity $ $ $
For both the current year and one year ago, compute the following ratios:
Exercise Algo Analyzing liquidity LO P
a Compute the current ratio for each of the three years.
b Did the current ratio improve or worsen over the threeyear period?
a Compute the acidtest ratio for each of the three years.
b Did the acidtest ratio improve or worsen over the threeyear period?
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