Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets $ 25,494 73,888 91,962 8,459 236,656 $ 436,459 $ 29, 800 $ 30,737 52,676 69,608 7,901 216, 273 $ 376,258 $ 307,400 Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 40,577 42,778 3,348 189,960 Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings $ 106,505 $ 64,223 $ 40,577 83,695 89,136 162,500 83,759 162,500 60,399 68,615 162,500 35,708 Total liabilities and equity $ 436,459 $ 376, 258 $ 307,400 (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?

Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets $ 25,494 73,888 91,962 8,459 236,656 $ 436,459 $ 29, 800 $ 30,737 52,676 69,608 7,901 216, 273 $ 376,258 $ 307,400 Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 40,577 42,778 3,348 189,960 Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings $ 106,505 $ 64,223 $ 40,577 83,695 89,136 162,500 83,759 162,500 60,399 68,615 162,500 35,708 Total liabilities and equity $ 436,459 $ 376, 258 $ 307,400 (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?

Name: Simon Company's year-end balance sheets follow.At December 31Current
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Description: Simon Company's year-end balance sheets follow.At December 31Current Yr1 Yr Ago2 Yrs AgoAssets$ 25,49429,800 $52,67669,6087,901216,273Cash$Accounts receivable, netMerchandise inventoryPrepaid expensesPlant assets, net73,88891,9628,459236,65630,73740

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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Subject: acounting
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Subject: accounting
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