50.1K

Verified Solution

Link Copied!

Sanderson Companys year-end balance sheets follow.

	At December 31			2012			2011			2010
	Assets
	Cash		$	30,800		$	35,625		$	36,800
	Accounts receivable, net			88,500			62,500			49,200
	Merchandise inventory			111,500			82,500			53,000
	Prepaid expenses			9,700			9,375			4,000
	Plant assets, net			277,500			255,000			229,500
	Total assets		$	518,000		$	445,000		$	372,500
	Liabilities and Equity
	Accounts payable		$	128,900		$	75,250		$	49,250
	Long-term notes payable secured by mortgages on plant assets			97,500			102,500			82,500
	Common stock, $10 par value			162,500			162,500			162,500
	Retained earnings			129,100			104,750			78,250
	Total liabilities and equity		$	518,000		$	445,000		$	372,500

(1)	Compute the current ratio for the year ended 2012, 2011, and 2010. (Round your answers to 2 decimal places.)

2012		to
2011		to
2010		to

(2)	Compute the acid-test ratio for the year ended 2012, 2011, and 2010. (Round your answers to 2 decimal places.)

2012		to
2011		to
2010		to

Answer & Explanation Solved by verified expert

See Answer