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2 eBook B Hint Print References Required information 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 $ 33,187 96, 187 122, 184 11,128 317,210 $ 579,896 $ 144,394 109,020 162,500 163,982 $ 579,896 1 Year Ago 2 Years Ago $ 42,076 $ 39,993 69,987 54,435 59, 156 92,483 4,583 260,550 $ 420,800 Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity For both the current year and one year ago, compute the following ratios: Exercise 13-7 (Algo) Analyzing liquidity LO P3 10,708 286,739 $ 499,910 $ 85,330 112,680 162,500 139,400 $ 499,910 (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. $ 56,101 93,927 162,500 108,272 $ 420,800

2 eBook B Hint Print References Required information 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 $ 33,187 96, 187 122, 184 11,128 317,210 $ 579,896 $ 144,394 109,020 162,500 163,982 $ 579,896 1 Year Ago 2 Years Ago $ 42,076 $ 39,993 69,987 54,435 59, 156 92,483 4,583 260,550 $ 420,800 Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity For both the current year and one year ago, compute the following ratios: Exercise 13-7 (Algo) Analyzing liquidity LO P3 10,708 286,739 $ 499,910 $ 85,330 112,680 162,500 139,400 $ 499,910 (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. $ 56,101 93,927 162,500 108,272 $ 420,800

FINANCIAL ACCOUNTING
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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2 eBook CO Hint Print References Required information 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 Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Exercise 13-7 (Algo) Analyzing liquidity LO P3 Required 1A Current Year (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? Current Year: 1 Year Ago: 2 Years Ago: $33,187 96, 187 122, 184 11, 128 317, 210 $ 579,896 For both the current year and one year ago, compute the following ratios: Complete this question by entering your answers in the tabs below. Numerator: 144,394 109,020 $ 85,330 112,680 162,500 162,500 163,982 139,400 $ 579,896 $ 499,910 Required 1B Required 2A Required 2B Compute the current ratio for each of the three years. 1 / Net sales 1 1 Current Ratio 1 Year Ago $ 39,993 69,987 92,483 10,708 286,739 $ 499,910 Denominator: < Required 1A = = = = = 2 Years Ago Required 1B $ 42,076 54,435 59,156 4,583 260,550 $ 420,800 $ 56,101 93,927 162,500 108,272 $ 420,800 Current Ratio Current ratio 0 to 1 0 to 1 0 to 1 >
Transcribed Image Text:2 eBook CO Hint Print References Required information 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 Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Exercise 13-7 (Algo) Analyzing liquidity LO P3 Required 1A Current Year (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? Current Year: 1 Year Ago: 2 Years Ago: $33,187 96, 187 122, 184 11, 128 317, 210 $ 579,896 For both the current year and one year ago, compute the following ratios: Complete this question by entering your answers in the tabs below. Numerator: 144,394 109,020 $ 85,330 112,680 162,500 162,500 163,982 139,400 $ 579,896 $ 499,910 Required 1B Required 2A Required 2B Compute the current ratio for each of the three years. 1 / Net sales 1 1 Current Ratio 1 Year Ago $ 39,993 69,987 92,483 10,708 286,739 $ 499,910 Denominator: < Required 1A = = = = = 2 Years Ago Required 1B $ 42,076 54,435 59,156 4,583 260,550 $ 420,800 $ 56,101 93,927 162,500 108,272 $ 420,800 Current Ratio Current ratio 0 to 1 0 to 1 0 to 1 >
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? Complete this question by entering your answers Required 1A Required 1B Required 2A Required 2B Did the current ratio improve or worsen over the three-year period? Current ratio 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? Required 1A Required 1B Complete this question by entering your answers in the tabs below. Current Year: 1 Year Ago: 2 Years Ago: < Required 1A Compute the acid-test ratio for each of the three years. Required 2A Required 2B + +Short-term investments + Acid-test ratio Numerator: Required 1A Required 1B Required 2A + the tabs below. Acid-test ratio + + Required 2B 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? Complete this question by entering your answers in the tabs below. < Required 1B Did the acid-test ratio improve or worsen over the three-year period? < Required 2A Required 2A 1 1 1 1 1 > Required 2B > Denominator: Required 2B> = Acid-Test Ratio Acid-test ratio 0 to 1 0 to 1 0 to 1
Transcribed Image Text: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? Complete this question by entering your answers Required 1A Required 1B Required 2A Required 2B Did the current ratio improve or worsen over the three-year period? Current ratio 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? Required 1A Required 1B Complete this question by entering your answers in the tabs below. Current Year: 1 Year Ago: 2 Years Ago: < Required 1A Compute the acid-test ratio for each of the three years. Required 2A Required 2B + +Short-term investments + Acid-test ratio Numerator: Required 1A Required 1B Required 2A + the tabs below. Acid-test ratio + + Required 2B 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? Complete this question by entering your answers in the tabs below. < Required 1B Did the acid-test ratio improve or worsen over the three-year period? < Required 2A Required 2A 1 1 1 1 1 > Required 2B > Denominator: Required 2B> = Acid-Test Ratio Acid-test ratio 0 to 1 0 to 1 0 to 1
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