Refer to Mixon Company’s balance sheets in Exercise 1–3. Express the balance sheets in common-size percents. Round to the nearest one-tenth of a percent. Mixon Company's year-end balance sheets show the following:CashAccounts receivable, netMerchandise inventoryPrepaid expensesPlant assets, netTotal assetsAccounts payable ..Long-term notes payable securedby mortgages on plant assetsCommon stock, $10 par valueRetained earningsTotal liabilities and equity2006$ 30,80088,500111,5009,700277,500$518,000$128,90097,500162,500129,100$518,00020052004$ 35,625$36,80062,50049,20082,50053,0009,3754,000255,000229,500$445,000$372,500$ 75,250 $ 49,250102,50082,500162,500162,500104,75078,250$445,000 $372,500Required:Compare the year-end short-term liquidity position of this company at the end of 2006, 2005,and 2004 by computing the: (a) current ratio and (b) acid-test ratio. Comment on the ratioresults.EXERCISE 1-3Evaluating Short-TermLiquidity

Required: Compare the year-end short-term liquidity position of this company at the end of 2006, 2005, and 2004 by computing the: (a) current ratio and (b) acid-test ratio. Comment on the ratio results.

Required: Compare the year-end short-term liquidity position of this company at the end of 2006, 2005, and 2004 by computing the: (a) current ratio and (b) acid-test ratio. Comment on the ratio results.

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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