70.2K

Verified Solution

Link Copied!

pls make sure the answers aren't cropped out

Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant Total assets 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 $ 24,347 72,021 92,382 8,083 228,598 $ 425,431 arsets, net $ 29,633 $ 29,358 51,345 39,544 67,849 42,969 7,625 3,229 210,299 187,500 $366,751 $ 302,600 $ 109, 110 $ 61,361 $ 40,742 78,381 162,500 75,440 425,431 83,509 66,875 162,500 162,500 59,381 32,483 $366,751 $ 302,600 (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. Choose Numerator: Current assets Current Ratio 1 Choose Denominator: 1 Current liabilities 1 = Current Yr: 1 Yr Ago: 2 Yrs Ago: Current Ratio Current ratio 0 to 1 0 to 1 0 to 1 11 7 Required 1A Required 1B Required 2A Required 2B Compute the acid-test ratio for each of the three years, Acid-test ratio Choose Numerator: Choose Denominator: Current Yr: 1 Yr Ago: 2 Yrs Ago Acid-Test Rat Acid-test ratic 0 to 1 Olo 1 0 to 1

Answer & Explanation Solved by verified expert

See Answer