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Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow.
Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Current Year 1 Year Ago 2 Years Ago $ 30,808 $ 30,833 52,328 $ 25,839 72,643 94,160 8,155 237,156 $ 437,953 Liabilities and Equity Accounts payable $ 109,050 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity 83,159 163,500 82,244 69,846 8,008 216,556 $ 377,546 $ 65,719 89,441 163,500 58,886 $ 437,953 $ 377,546 For both the current year and one year ago, compute the following ratios: 42,369 44,676 3,496 196,426 $ 317,800 $ 42,369 71,638 163,500 40,293 $ 317,800 Exercise 17-7 (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? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B
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