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

Answered: Image /qna-images/answer/6c60d007-e67c-4fc6-b876-e0ae953a336d.jpg

(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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