6 rt 1 of 3 nts eBook Hint eferences [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 Current Year $ 34,375 99,630 124,001 11,070 319,442 $588,518 $ 146,541 111,748 163,500 166,729 $588,518 1 Year Ago 2 Years Ago $ 40,993 $ 41,027 69,607 55,808 96,674 60,036 10,761 289, 308 4,697 257,032 $ 418,600 $ 507,343 Exercise 13-7 (Algo) Analyzing liquidity LO P3 $ 83,169 115,522 162,500 146, 152 $507,343 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: (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? $ 54,703 91,585 162,500 109,812 $ 418,600
6 rt 1 of 3 nts eBook Hint eferences [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 Current Year $ 34,375 99,630 124,001 11,070 319,442 $588,518 $ 146,541 111,748 163,500 166,729 $588,518 1 Year Ago 2 Years Ago $ 40,993 $ 41,027 69,607 55,808 96,674 60,036 10,761 289, 308 4,697 257,032 $ 418,600 $ 507,343 Exercise 13-7 (Algo) Analyzing liquidity LO P3 $ 83,169 115,522 162,500 146, 152 $507,343 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: (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? $ 54,703 91,585 162,500 109,812 $ 418,600
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please do not give solution in image format thanku
![6
rt 1 of 3
nts
eBook
(11)
Hint
eferences
[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
Current Year
$ 34,375
99,630
124,001
11,070
319,442
$ 588,518
Exercise 13-7 (Algo) Analyzing liquidity LO P3
$ 146,541
111,748
163,500
166,729
$588,518
For both the current year and one year ago, compute the following ratios:
(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 Required 2A Required 2B
Current Year:
1 Year Ago:
2 Years Ago:
Complete this question by entering your answers in the tabs below.
Compute the current ratio for each of the three years.
Numerator:
1
1
1
1
1
Current Ratio
1 Year Ago
$ 40,993
69,607
96,674
10,761
289,308
$ 507,343
$ 83,169
115,522
162,500
146, 152
$ 507,343
Denominator:
Required 1A
=
||
2 Years Ago
$ 41,027
55,808
= Current Ratio
= Current ratio
to 1
to 1
to 1
=
60,036
4,697
257,032
$ 418,600
$ 54,703
91,585
162,500
109,812
$ 418,600
Required 1B >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3879c876-e9de-4e60-92b7-11bfd7828c24%2Ff868c57e-e609-4ad7-98f8-2c4efc61efec%2F948caii_processed.jpeg&w=3840&q=75)
Transcribed Image Text:6
rt 1 of 3
nts
eBook
(11)
Hint
eferences
[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
Current Year
$ 34,375
99,630
124,001
11,070
319,442
$ 588,518
Exercise 13-7 (Algo) Analyzing liquidity LO P3
$ 146,541
111,748
163,500
166,729
$588,518
For both the current year and one year ago, compute the following ratios:
(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 Required 2A Required 2B
Current Year:
1 Year Ago:
2 Years Ago:
Complete this question by entering your answers in the tabs below.
Compute the current ratio for each of the three years.
Numerator:
1
1
1
1
1
Current Ratio
1 Year Ago
$ 40,993
69,607
96,674
10,761
289,308
$ 507,343
$ 83,169
115,522
162,500
146, 152
$ 507,343
Denominator:
Required 1A
=
||
2 Years Ago
$ 41,027
55,808
= Current Ratio
= Current ratio
to 1
to 1
to 1
=
60,036
4,697
257,032
$ 418,600
$ 54,703
91,585
162,500
109,812
$ 418,600
Required 1B >
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education