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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 $ 31,800 89,500 112,500 10,700 278,500 $ 523,000 1 Year Ago 2 Years Ago $ 37,800 50,200 54,000 5,000 230,500 $ 377,500 $ 129,900 98,500 163,500 131,100 $ 523,000 $ 35,625 62,500 82,500 9,375 255,000 $.445,000 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: $ 75,250 101,500 163,500 104,750 $ 445,000 xercise 13-7 (Static) Analyzing liquidity LO P3 a) Compute the current ratio for each of the three years. b) Did the current ratio improve or worsen over the three-year period? -a) Compute the acid-test ratio for each of the three years. -b) Did the acid-test ratio improve or worsen over the three-year period? $ 51,250 83,500 163,500 79,250 $ 377,500

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 $ 31,800 89,500 112,500 10,700 278,500 $ 523,000 1 Year Ago 2 Years Ago $ 37,800 50,200 54,000 5,000 230,500 $ 377,500 $ 129,900 98,500 163,500 131,100 $ 523,000 $ 35,625 62,500 82,500 9,375 255,000 $.445,000 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: $ 75,250 101,500 163,500 104,750 $ 445,000 xercise 13-7 (Static) Analyzing liquidity LO P3 a) Compute the current ratio for each of the three years. b) Did the current ratio improve or worsen over the three-year period? -a) Compute the acid-test ratio for each of the three years. -b) Did the acid-test ratio improve or worsen over the three-year period? $ 51,250 83,500 163,500 79,250 $ 377,500

FINANCIAL ACCOUNTING
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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Exercise 13-7 (Static) Analyzing liquidity LO P3 (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? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 28 Compute the current ratio for each of the three years. Current Year: 1 Year Ago: 2 Years Ago: Numerator: Current Ratio 1 1 1 1 < Required 1A Denominator: M = Required 1B > Current Ratio. Current ratio to 1 to 1 to 1
Transcribed Image Text:Exercise 13-7 (Static) Analyzing liquidity LO P3 (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? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 28 Compute the current ratio for each of the three years. Current Year: 1 Year Ago: 2 Years Ago: Numerator: Current Ratio 1 1 1 1 < Required 1A Denominator: M = Required 1B > Current Ratio. Current ratio to 1 to 1 to 1
Use the following information for the Exercises below. (Static) [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 2 Years Ago $ 31,800 89,500 112,500 10,700 278,500 $ 523,000 $ 35,625 62,500 82,500 9,375 255,000 $ 445,000 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: $ 129,900 98,500 163,500 131, 100 $ 75,250 101,500 163,500 104,750 $ 523,000 $ 445,000 Exercise 13-7 (Static) Analyzing liquidity LO P3 (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? $ 37,800 50,200 54,000 5,000 230,500 $ 377,500 $ 51,250 83,500) 163,500 79,250 $ 377,500
Transcribed Image Text:Use the following information for the Exercises below. (Static) [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 2 Years Ago $ 31,800 89,500 112,500 10,700 278,500 $ 523,000 $ 35,625 62,500 82,500 9,375 255,000 $ 445,000 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: $ 129,900 98,500 163,500 131, 100 $ 75,250 101,500 163,500 104,750 $ 523,000 $ 445,000 Exercise 13-7 (Static) Analyzing liquidity LO P3 (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? $ 37,800 50,200 54,000 5,000 230,500 $ 377,500 $ 51,250 83,500) 163,500 79,250 $ 377,500
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