Refer to Simon Company's balance sheets in Exercise 17-6. Analyze its year-end short-term liquidity position at the
Question:
Refer to Simon Company's balance sheets in Exercise 17-6. Analyze its year-end short-term liquidity position at the end of 2017, 2016, and 2015 by computing (1) the current ratio and (2) the acid-test ratio. Comment on the ratio results. (Round ratio amounts to two decimals.)
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At December 31 2017 2016 2015 Assets Cash Accounts receivable, net Merchandise inventory. Prepaid expenses Plant assets, net Total assets $ 31,800 35,625 37,800 89,500 62,500 50,200 112,500 82,500 54,000 5,000 278,500 255,000 230,500 $523,000 $445,000 $377,500 10,700 9,375 Liabilities and Equity Accounts payable Long-term notes payable secured by $129,900 75,250 51,250 mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity 98,500 01,500 83,500 163,500 163,500 163,500 131,100 104,75079,250 $523,000 $445,000 $377,500
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Related Book For
Fundamental Accounting Principles
ISBN: 978-1259536359
23rd edition
Authors: John Wild, Ken Shaw, Barbara Chiappett
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