i need help with this current ratio Required Information[The following information applies to the questions displayed below.]Simon Company's year-end balance sheets follow.At December 31AssetsCashAccounts receivable, netMerchandise inventoryPrepaid expensesPlant assets, netTotal assetsLiabilities and EquityAccounts payableLong-term notes payableCommon stock, $10 par valueRetained earningsTotal liabilities and equityCurrent Yr:1 Yr Ago:2 Yrs Ago:Current YearNumerator:Required 1A Required 1B Required 2A Required 2BCompute the current ratio for each of the three years.Current assets(1-a) Compute the current ratio for each of the three years.(1-b) Did the current ratio Improve or worsen over the three-year period?(2-a) Compute the acid-test ratio for each of the three years.(2-b) Did the acid-test ratio improve or worsen over the three-year period?1Complete this question by entering your answers in the tabs below.111$ 27,70181, ese100,9438,832246,300$ 464,856$ 114,59285,645162,500102, 119$ 464,856Current RatioCurrent liabilities1 Year AgoDenominator:$ 32,70057,78673,3958,500228,357$ 400,738$ 66,37093,091162,50078,777$ 400,738===2 Years Ago$ 32,08843,21746,4913,637201,967$ 327,400$ 42,35271,632163,50049,916$ 327,400Current RatioCurrent ratio0 to 10 to 10 to 1

Solution 1a: Current Ratio Choose Numerator / Choose Denominator = Current Ratio…

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 $ 27,701 81, ese 100,943 8,832 246,300 $ 464,856 $ 114,592 85,645 162,500 102,119 $ 464,856 1 Year Ago $ 32,700 57,786 73,395 8,500 228,357 $ 400,738 $ 66,370 93,091 162,500 78,777 $ 400,738 (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? 2 Years Ago $ 32,088 43,217 46,491 3,637 201,967 $ 327,400 $ 42,352 71,632 163,500 49,916 $ 327,400

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 $ 27,701 81, ese 100,943 8,832 246,300 $ 464,856 $ 114,592 85,645 162,500 102,119 $ 464,856 1 Year Ago $ 32,700 57,786 73,395 8,500 228,357 $ 400,738 $ 66,370 93,091 162,500 78,777 $ 400,738 (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? 2 Years Ago $ 32,088 43,217 46,491 3,637 201,967 $ 327,400 $ 42,352 71,632 163,500 49,916 $ 327,400

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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