Required information [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 1 Year Ago $ 30,711 $ 37,378 89,926 65,412 115,372 86,437 10,400 290,207 9,812 263,561 $ 462,600 $ 536,616 $ 129,609 102,901 163,500 140,606 $ 536,616 $ 78,961 108,526 162,500 112,613 $ 462,600 2 Years Ago $ 38,546 49,868 53,099 4,368 239,619 $385,500 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? $ 50,377 85,196 163,500 86,427 $385,500
Required information [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 1 Year Ago $ 30,711 $ 37,378 89,926 65,412 115,372 86,437 10,400 290,207 9,812 263,561 $ 462,600 $ 536,616 $ 129,609 102,901 163,500 140,606 $ 536,616 $ 78,961 108,526 162,500 112,613 $ 462,600 2 Years Ago $ 38,546 49,868 53,099 4,368 239,619 $385,500 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? $ 50,377 85,196 163,500 86,427 $385,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[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 1 Year Ago
$ 37,378
$ 30,711
89,926
115,372
10,400
290,207
65,412
86,437
$ 536,616
9,812
263, 561
$ 462,600
$ 129,609
102,901
163,500
140,606
$ 536,616
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:
$ 78,961
108,526
162,500
112,613
$ 462,600
2 Years Ago
(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?
$ 38,546
49,868
53,099
4,368
239,619
$385,500
$ 50,377
85,196
163,500
86,427
$ 385,500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6ebcfa6a-6e4b-4125-bc88-71ab5b3e281c%2F48767721-0b4c-43fc-8206-383feb749049%2Fflr3scb_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[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 1 Year Ago
$ 37,378
$ 30,711
89,926
115,372
10,400
290,207
65,412
86,437
$ 536,616
9,812
263, 561
$ 462,600
$ 129,609
102,901
163,500
140,606
$ 536,616
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:
$ 78,961
108,526
162,500
112,613
$ 462,600
2 Years Ago
(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?
$ 38,546
49,868
53,099
4,368
239,619
$385,500
$ 50,377
85,196
163,500
86,427
$ 385,500
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