12 Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2...
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Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net $ 30,579 87,751 109, 226 9,848 275,757 $ 513,161 $ 35,036 $ 36,858 61,314 49,625 84,296 51,830 9,104 3,975 252,630 222,712 $ 442,380 $ 365,000 Total assets $ 127,777 $ 76,257 $ 48,662 Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity 95,510 162,500 127,374 $ 513,161 101,747 79,858 162,500 162,500 101,876 73,980 $ 442,380 $ 365,000 (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 2B Compute the current ratio for each of the three years. Current Ratio Choose Numerator: 1 Choose Denominator: = Current Ratio 1 = Current ratio Current Yr: / II to 1 to 1 / = 1 Yr Ago: 2 Yrs Ago: / to 1
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