aity LO P3Simon Company's year-end balance sheets follow.At December 31AssetsCashAccounts receivable, netMerchandise inventoryPrepaid expensesPlant assets, netCurrent Yr1 Yr Ago2 Yrs Ago29,993 $51,43869,3587,952216,16832,19225,14676,59894,4378,263230,4502$41,66144,8173,437196,693Total assets$ 434,894$ 374,909 $ 318,800Liabilities and EquityAccounts payableLong-term notes payable secured bymortgages on plant assetsCommon stock, $10 par valueRetained earings$ 107,2062$62,726 $42,50283,395162,50081,79387,091162,50062,59271,159162,50042,639Total liabilities and equity$ 434,894$ 374,909 $ 318,800(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 1ARequired 1BRequired 2ARequired 2BCompute the current ratio for each of the three years.Current RatioChoose Numerator:Choose Denominator:Current Ratio%3DCurrent ratioCurrent Yr:to 1%3D1 Yr Ago:to 1%3D2 Yrs Ago:to 1%3D< Required 1ARequired 1B

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(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?

(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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

aity LO P3
Simon Company's year-end balance sheets follow.
At December 31
Assets
Cash
Accounts receivable, net
Merchandise inventory
Prepaid expenses
Plant assets, net
Current Yr
1 Yr Ago
2 Yrs Ago
29,993 $
51,438
69,358
7,952
216,168
32,192
25,146
76,598
94,437
8,263
230,450
2$
41,661
44,817
3,437
196,693
Total assets
$ 434,894
$ 374,909 $ 318,800
Liabilities and Equity
Accounts payable
Long-term notes payable secured by
mortgages on plant assets
Common stock, $10 par value
Retained earings
$ 107,206
2$
62,726 $
42,502
83,395
162,500
81,793
87,091
162,500
62,592
71,159
162,500
42,639
Total liabilities and equity
$ 434,894
$ 374,909 $ 318,800
(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 Numerator:
Choose Denominator:
Current Ratio
%3D
Current ratio
Current Yr:
to 1
%3D
1 Yr Ago:
to 1
%3D
2 Yrs Ago:
to 1
%3D
< Required 1A
Required 1B

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