Simon Companys year-end balance sheets follow. At December 31 Current Yr...
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Accounting
Simon Companys year-end balance sheets follow.
At December 31
Current Yr
1 Yr Ago
2 Yrs Ago
Assets
Cash
$
35,049
$
40,969
$
41,831
Accounts receivable, net
103,593
70,985
57,464
Merchandise inventory
123,926
93,802
61,818
Prepaid expenses
11,175
10,541
4,648
Plant assets, net
314,421
290,741
261,039
Total assets
$
588,164
$
507,038
$
426,800
Liabilities and Equity
Accounts payable
$
146,453
$
86,546
$
55,211
Long-term notes payable secured by mortgages on plant assets
111,681
116,619
96,209
Common stock, $10 par value
162,500
162,500
162,500
Retained earnings
167,530
141,373
112,880
Total liabilities and equity
$
588,164
$
507,038
$
426,800
(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?
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