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  3. simon company’s year-end balance sheets follow.

Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 33,469 $ 39,122 $ 41,164 Accounts receivable, net 97,984 71,230 54,337 Merchandise...

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General Management

Simon Company’s year-end balance sheets follow.

At December 31Current Yr1 Yr Ago2 Yrs Ago
Assets
Cash$33,469$39,122$41,164
Accounts receivable, net97,98471,23054,337
Merchandise inventory119,50092,29860,815
Prepaid expenses11,21410,2704,437
Plant assets, net310,838281,050255,047
Total assets$573,005$493,970$415,800
Liabilities and Equity
Accounts payable$138,398$85,151$56,532
Long-term notes payable secured by
mortgages on plant assets		106,648115,88589,135
Common stock, $10 par value162,500162,500162,500
Retained earnings165,459130,434107,633
Total liabilities and equity$573,005$493,970$415,800


(1-a) Compute the current ratio for each of thethree years.
(1-b) Did the current ratio improve or worsen overthe three year period?
(2-a) Compute the acid-test ratio for each of thethree years.
(2-b) Did the acid-test ratio improve or worsenover the three year period?

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