Refer to Simon Companys balance sheets in Exercise 17-7. Analyze its year- end short- term liquidity position

Refer to Simon Company’s balance sheets in Exercise 17-7. Analyze its year- end short- term liquidity position at the end of 2014, 2013, and 2012 by computing

In Exercise 17-7, Simon Company’s year-end balance sheets follow. Express the balance sheets in common- size percents. Round amounts to the nearest one- tenth of a percent.

(1) The current ratio
(2) The acid-test ratio. Comment on the ratio results. (Round ratio amounts to twodecimals.)

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At December 31 2012 Assets $31800 35,625 37,800 Merchandise inventory2500 82,500 54,000 10.700 9375 5000 9.375 5,000 Plant assets, net... Total assets. Liabilities and Equity Accounts payable Long-term notes payable secured by 2 mortgages on plant assets ...98,500 01,500 83,500 ....63,500 Recained earnings131.100 104.750 131,100 04,750 79,250 $523,000 $445,000 $377,500 Total liabilities and equity