[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 assetsCurrent Year$ 27,97080, 264100,9179,097251, 134$ 469,382$ 116,87690,891163,50098,115$ 469,3821 Year Ago$ 31,40058,34977,1048,412229,375$ 404, 640Liabilities and EquityAccounts payableLong-term notes payableCommon stock, $10 par valueRetained earningsTotal liabilities and equityFor both the current year and one year ago, compute the following ratios:Exercise 13-7 (Algo) Analyzing liquidity LO P32 Years Ago$ 33,71745,40148,3613,635206,086$ 337,200$ 70,436$ 45,84692,13773,776163,500163,50054,07878,567$ 404,640 $ 337,200(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? (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 2BCompute the current ratio for each of the three years.Current Year:1 Year Ago:2 Years Ago:Numerator:I//1/Current RatioDenominator:====Current RatioCurrent ratioto 1to 1to 1

The current ratio tells about the relation between current assets and current liabilities of the…

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 Current Year $ 27,970 80, 264 100,917 9,097 251, 134 $ 469,382 $ 116,876 90,891 163,500 98,115 1 Year Ago $ 31,400 58,349 77,104 8,412 229,375 $ 404,640 $ 70,436 92,137 163,500 78,567 2 Years Ago $ 33,717 45,401 48,361 3,635 206,086 $ 337,200 $ 45,846 73,776 163,500 54,078

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 Current Year $ 27,970 80, 264 100,917 9,097 251, 134 $ 469,382 $ 116,876 90,891 163,500 98,115 1 Year Ago $ 31,400 58,349 77,104 8,412 229,375 $ 404,640 $ 70,436 92,137 163,500 78,567 2 Years Ago $ 33,717 45,401 48,361 3,635 206,086 $ 337,200 $ 45,846 73,776 163,500 54,078

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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