Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2...
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Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago $ Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net $ 31,800 89,500 112,500 10,700 278,500 $ 523,000 35,625 $ 62,500 82,500 9,375 255,000 37,800 50,200 54,000 5,000 230,500 Total assets $ 445,000 $ 377,500 $ 129,900 $ 75,250 $ 51, 250 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 98,500 163,500 131, 100 101,500 83,500 163,500 163,500 104,750 79,250 $ 445,000 $ 377,500 $ 523,000 (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 acid-test ratio for each of the three years. Acid-Test Ratio Choose Numerator: 1 Choose Denominator: = Acid-Test Ratio Acid-test ratio Current Yr: + + 1 = 0 to 1 0 to 1 1 Yr Ago: + 2 Yrs Ago: = 0 to 1
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