Use the following information for the Exercises below . (Static) The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow . Current Yr 1 Yr Ago 2 Yrs Ago At December 31 Assets Cash 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 $ 31,800 $ 35,625 $ 37,800 89,500 62,500 50, 200 112,500 82,500 54,000 10,7009,375 5,000 278,500 255,000 230,500 $ 523,000 445,000 $377,500 2 \$ 4 $ 129,900 98,500 163,500 131,100 $ 523,000 $ 75,250 $ 51,250 101,500 83,500 163,500 163,500 104,750 79,250 $ 445,000 $377,500 Exercise 13-7 ( Static ) 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?

Required information Use the following information for the Exercises below. (Static) The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 31,800 $ 35,625 $ 37,800 Accounts receivable, net 89,500 62,500 50,200 Merchandise inventory 112,500 82,500 54,000 Prepaid expenses 10,790 9,375 5,800 Plant assets, net 278,500 255,000 239,500 Total assets $ 523,000 $ 445,000 $377.500 Liabilities and Equity Accounts payable $ 129,900 $ 75,250 $ 51,258 Long-term notes payable 98,500 101,500 83,500 Common stock, $10 par value 163,500 163,500 163,500 Retained earnings 131, 100 104,750 79, 250 Total liabilities and equity $ 523,000 $ 445,000 $ 377,500 Exercise 13-7 (Static) 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 18 Required 2A Required 28 Compute the current ratio for each of the three years. Current Ratio 1 Choose Denominator Choose Numerator: Current Ratio Current ratio 1 = to 1 101 Current Yr: 1 Yr Ago: 2 Yrs Ago: ### 1 to 1 Required 10 > Exercise 13-7 (Static) Analyzing liquidity LO P3 2 (1-a) Compute the current ratio for each of the three years. (1-1) 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 28 Did the current ratio improve or worsen over the three-year period? Current ratio Exercise 13-7 (Static) 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. 1 Required 1A Required 10 Required 2A Required 28 nos Compute the acid-test ratio for each of the three years. Acid-Test Ratio Choose Numerator: Current Yr: 1 Yr Ago: 2 Yrs Ago: 1 Choose Denominator: 1 1 1 / Acid-Test Ratio Acid-test rabo to 1 101 to 1