Refer to Simon Company's balance sheets in Exercise 13-6.

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. Analyze and comment on the results.

Analyze its year-end short-term liquidity position at the end of 2016, 2015, and 2014 by computing
(1) The current ratio and
(2) The acid-test ratio. Comment on the ratio results. (Round ratio amounts to two decimals.)

Transcribed Image Text:

2016 2015 2014 Assets .31,800 $ 35,625 37,800 89,500 62,500 50,200 82,500 54,000 5,000 . 278,500 255,000 230,500 . $523,000 $445,000 $377,500 Accounts receivable, net Merchandise inventory . 112,500 10,700 9.375 Total assets. Liabilities and Equity Long-term notes payable secured by .$129,900 $ 75,250 $51,250 mortgages on plant assets .. Common stock, $10 par value 98,500 01,500 83,500 . 163,500 163,500 163,500 79,250 . $523,000 $445,000 $377,500 . 131,100 104.750 Total liabilities and equity....