Required Information [The following Information applies to the questions displayed below.] Simon Company's year-end balance sheets...

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Required Information [The following Information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Current Year 1 Year Ago 2 Years Ago $ 36,934 108,118 135,938 11,894 333,124 $ 44,036 77,064 100,836 11,220 306,506 $ 539,662 $ 626,008 $ 157,435 Long-term notes payable $ 88,467 122,881 Common stock, $10 par value Retained earnings Total liabilities and equity 117,690 163,500 187,383 162,500 165,814 $ 626,008 $ 539,662 For both the current year and one year ago, compute the following ratios: $ 42,776 59,363 61,356 4,753 272,652 $ 440,900 $ 58,199 98,413 162,500 121,788 $ 440,900 (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 current ratio for each of the three years. Current Year: 1 Year Ago: 2 Years Ago: Numerator: Current Ratio Denominator: = Current Ratio = Current ratio = to 1 = to 1 to 1 < Required 1A Required 1B > Required Information [The following Information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Current Year 1 Year Ago 2 Years Ago $ 36,934 108,118 135,938 11,894 333,124 $ 44,036 77,064 100,836 11,220 306,506 $ 539,662 $ 626,008 $ 157,435 Long-term notes payable $ 88,467 122,881 Common stock, $10 par value Retained earnings Total liabilities and equity 117,690 163,500 187,383 162,500 165,814 $ 626,008 $ 539,662 For both the current year and one year ago, compute the following ratios: $ 42,776 59,363 61,356 4,753 272,652 $ 440,900 $ 58,199 98,413 162,500 121,788 $ 440,900 (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 current ratio for each of the three years. Current Year: 1 Year Ago: 2 Years Ago: Numerator: Current Ratio Denominator: = Current Ratio = Current ratio = to 1 = to 1 to 1 < Required 1A Required 1B >

Answer rating: 100% (QA)

To compute the current ratio for each of the three years we need to divide the current assets by the current liabilities Current Year Numerator Curren... View the full answer