imon Company’s year-end balance sheets follow. At December 31 2017 2016 2015 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 10,700 9,375 5,000 Plant assets, net 278,500 255,000 230,500 Total assets $ 523,000 $ 445,000 $ 377,500 Liabilities and Equity Accounts payable $ 129,900 $ 75,250 $ 51,250 Long-term notes payable secured by mortgages on...

3.5 Ratings (558 Votes)

1	Current ratio=Current asset/Current liabilities
		2017	2016	2015
	Current assets	244500	190000	147000
	Current liabilities	129900	75250	51250
	Current ratio	1.88	2.52	2.87

2	Acid-test ratio=(Current assets-Inventories)/Current liabilities
		2017	2016	2015
	Current assets	244500	190000	147000
	Less: inventories	112500	82500	54000
		132000	107500	93000
	Current liabilities	129900	75250	51250
	Acid-test ratio	1.02	1.43	1.81

	Note: 1- Current assets
		2017	2016	2015
	Cash	31800	35625	37800
	Accounts receivable,Net	89500	62500	50200
	Merchandise inventory	112500	82500	54000
	Prepaid expenses	10700	9375	5000
	Total current assets	244500	190000	147000

	Note:2- current Liabilities
		2017	2016	2015
	Accounts payable	129900	75250	51250
	Total current liabilities	129900	75250	51250

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At December31	2017		2016		2015
Assets
Cash	$	31,800	$	35,625	$	37,800
Accountsreceivable, net		89,500		62,500		50,200
Merchandiseinventory		112,500		82,500		54,000
Prepaidexpenses		10,700		9,375		5,000
Plant assets,net		278,500		255,000		230,500
Totalassets	$	523,000	$	445,000	$	377,500
Liabilities and Equity
Accountspayable	$	129,900	$	75,250	$	51,250
Long-term notespayable secured by mortgages on plant assets		98,500		101,500		83,500
Common stock,$10 par value		163,500		163,500		163,500
Retainedearnings		131,100		104,750		79,250
Totalliabilities and equity	$	523,000	$	445,000	$	377,500

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