Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. required information skip to question [the follo

Required information Skip to question [The following information applies to the questions displayed...

50.1K

Verified Solution

Question

Accounting

Required information

Skip to question

[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 $ 24,202 $ 28,573 $ 29,472
Accounts receivable, net 70,145 49,012 38,899
Merchandise inventory 88,194 66,729 42,699
Prepaid expenses 7,638 7,352 3,407
Plant assets, net 220,024 201,957 186,223
Total assets $ 410,203 $ 353,623 $ 300,700
Liabilities and Equity
Accounts payable $ 103,162 $ 57,969 $ 38,899
Long-term notes payable 75,576 82,960 66,455
Common stock, $10 par value 162,500 163,500 162,500
Retained earnings 68,965 49,194 32,846
Total liabilities and equity $ 410,203 $ 353,623 $ 300,700

(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?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students