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 payableCurrent Year 1 Year Ago 2 Years Ago$ 35,62562,500$ 37,80050,200$ 31,80089,500112,50010,700278,50098,500$ 523,000$ 129,900Long-term notes payableCommon stock, $10 par valueRetained earningsTotal liabilities and equity82,5009,375255,000$ 445,000$ 75,250101,500163,500104,750163,500131,100$ 523,000$ 445,000For both the current year and one year ago, compute the following ratios:54,0005,000230,500$ 377,500$ 51,25083,500163,50079,250$ 377,5001-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 acid-test ratio for each of the three years.Numerator:+Short-term investmentsCurrent Year:1 Year Ago:+2 Years Ago:+Acid-Test RatioDenominator:Acid-Test Ratio=Acid-test ratio+0 to 1+0 to 1=0 to 1< Required 1BRequired 2B >

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Description: 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 asset

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[The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. Current Year 1 Year Ago 2 Years Ago At December 31 Assets Cash $ 31,800 Accounts receivable, net $ 35,625 62,500 Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable 89,500 112,500 10,700 278,500 98,500 $ 523,000 $ 129,900 Long-term notes payable Common stock, $10 par value Total liabilities and equity Retained earnings 82,500 9,375 255,000 $ 445,000 $ 75,250 101,500 163,500 104,750 163,500 131,100 $ 523,000 $ 445,000 For both the current year and one year ago, compute the following ratios: $ 37,800 50,200 54,000 5,000 230,500 $ 377,500 $ 51,250 83,500 163,500 79,250 $ 377,500 Compute the current ratio for each of the three years. Did the current ratio improve or worsen over the three-year period? Compute the acid-test ratio for each of the three years. Did the acid-test ratio improve or worsen over the three-year period? omplete this question by entering your answers in the tabs below.

[The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. Current Year 1 Year Ago 2 Years Ago At December 31 Assets Cash $ 31,800 Accounts receivable, net $ 35,625 62,500 Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable 89,500 112,500 10,700 278,500 98,500 $ 523,000 $ 129,900 Long-term notes payable Common stock, $10 par value Total liabilities and equity Retained earnings 82,500 9,375 255,000 $ 445,000 $ 75,250 101,500 163,500 104,750 163,500 131,100 $ 523,000 $ 445,000 For both the current year and one year ago, compute the following ratios: $ 37,800 50,200 54,000 5,000 230,500 $ 377,500 $ 51,250 83,500 163,500 79,250 $ 377,500 Compute the current ratio for each of the three years. Did the current ratio improve or worsen over the three-year period? Compute the acid-test ratio for each of the three years. Did the acid-test ratio improve or worsen over the three-year period? omplete this question by entering your answers in the tabs below.

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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