Simon Company's year-end balance sheets follow. At December 31 Assets Cash Current Year 1 Year Ago...

 

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Simon Company's year-end balance sheets follow. At December 31 Assets Cash Current Year 1 Year Ago 2 Years Ago $ 28,744 85,835 $ 33,600 59,393 $ 33,627 Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity 105,805 9,537 262,195 91,593 80,054 8,909 242,282 $ 492,116 $ 424,238 $ 124,988 162,500 113,035 $ 73,130 97,575 162,500 91,033 $ 492,116 $ 424,238 For both the current year and one year ago, compute the following ratios: 47,124 50,694 3,851 211,304 $ 346,600 $ 45,751 76,599 163,500 60,750 $ 346,600 Exercise 13-7 (Algo) Analyzing liquidity LO P3 (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. Simon Company's year-end balance sheets follow. At December 31 Assets Cash Current Year 1 Year Ago 2 Years Ago $ 28,744 85,835 $ 33,600 59,393 $ 33,627 Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity 105,805 9,537 262,195 91,593 80,054 8,909 242,282 $ 492,116 $ 424,238 $ 124,988 162,500 113,035 $ 73,130 97,575 162,500 91,033 $ 492,116 $ 424,238 For both the current year and one year ago, compute the following ratios: 47,124 50,694 3,851 211,304 $ 346,600 $ 45,751 76,599 163,500 60,750 $ 346,600 Exercise 13-7 (Algo) Analyzing liquidity LO P3 (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.

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