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  3. simon companys year-end balance sheets follow.

Simon Companys year-end balance sheets follow. At December 31 Current Yr...

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Accounting

Simon Companys year-end balance sheets follow.

At December 31 Current Yr 1 Yr Ago 2 Yrs Ago
Assets
Cash $ 35,049 $ 40,969 $ 41,831
Accounts receivable, net 103,593 70,985 57,464
Merchandise inventory 123,926 93,802 61,818
Prepaid expenses 11,175 10,541 4,648
Plant assets, net 314,421 290,741 261,039
Total assets $ 588,164 $ 507,038 $ 426,800
Liabilities and Equity
Accounts payable $ 146,453 $ 86,546 $ 55,211
Long-term notes payable secured by mortgages on plant assets 111,681 116,619 96,209
Common stock, $10 par value 162,500 162,500 162,500
Retained earnings 167,530 141,373 112,880
Total liabilities and equity $ 588,164 $ 507,038 $ 426,800

(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?

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