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 $ 24,266 68,925 88,428 7,736 221,939 $ 411,294 $ 100,364 75,777 163,500 71,653 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: Current Year: 1 Year Ago: Required 1A Required 18 Required 2A Required 28 Numerator: 1 Year Ago $ 60,521 88,734 162,500 50,809 $ 411,294 $ 354,564 1-0) 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? Compute the current ratio for each of the three years. Current Ratio $ 28,649 51,128 Complete this question by entering your answers in the tabs below. 64,938 7,297 282,552 $ 354,564 Denominator: 2 Years Ago $ 30,445 39,082 42,813 3,317 185,923 $ 301,500 "I $ 38,684 66,632 163,500 32,764 $ 301,500 Current Ratio Current ratio to 1 to 1
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 $ 24,266 68,925 88,428 7,736 221,939 $ 411,294 $ 100,364 75,777 163,500 71,653 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: Current Year: 1 Year Ago: Required 1A Required 18 Required 2A Required 28 Numerator: 1 Year Ago $ 60,521 88,734 162,500 50,809 $ 411,294 $ 354,564 1-0) 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? Compute the current ratio for each of the three years. Current Ratio $ 28,649 51,128 Complete this question by entering your answers in the tabs below. 64,938 7,297 282,552 $ 354,564 Denominator: 2 Years Ago $ 30,445 39,082 42,813 3,317 185,923 $ 301,500 "I $ 38,684 66,632 163,500 32,764 $ 301,500 Current Ratio Current ratio to 1 to 1
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
$ 24,266
68,925
88,428
7,736
221,939
$ 411,294
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:
(1-0) 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 18 Required 2A Required 2B
Current Year:
1 Year Ago:
2 Years Ago:
$ 100,364
75,777
163,500
71,653
$ 411,294
Complete this question by entering your answers in the tabs below.
Compute the current ratio for each of the three years.
Numerator:
I
1
Current Ratio
1 Year Ago
$ 28,649
51,128
64,938
7,297
282,552
$ 354,564
Denominator:
$ 60,521
88,734
162,500
50,809
$ 354,564
< Required 1A
2 Years Ago
$ 30,445
39,082
42,813
3,317
185,923
$ 301,500
$ 38,604
66,632
163,500
32,764
$ 301,500
= Current Ratio
Current ratio
to 1
to 1
to 1
Required 1B >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe4fedfb6-4e78-45c6-9ced-60e189ae75c2%2Fa6749e35-c52a-4b7c-9978-25ca73dfe671%2Faah6he5_processed.png&w=3840&q=75)
Transcribed Image Text:0
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
$ 24,266
68,925
88,428
7,736
221,939
$ 411,294
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:
(1-0) 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 18 Required 2A Required 2B
Current Year:
1 Year Ago:
2 Years Ago:
$ 100,364
75,777
163,500
71,653
$ 411,294
Complete this question by entering your answers in the tabs below.
Compute the current ratio for each of the three years.
Numerator:
I
1
Current Ratio
1 Year Ago
$ 28,649
51,128
64,938
7,297
282,552
$ 354,564
Denominator:
$ 60,521
88,734
162,500
50,809
$ 354,564
< Required 1A
2 Years Ago
$ 30,445
39,082
42,813
3,317
185,923
$ 301,500
$ 38,604
66,632
163,500
32,764
$ 301,500
= Current Ratio
Current ratio
to 1
to 1
to 1
Required 1B >
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