[The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. Current Year 1 Year Ago 2 Years Ago At December 31 Assets Cash $ 31,800 Accounts receivable, net $ 35,625 62,500 Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable 89,500 112,500 10,700 278,500 98,500 $ 523,000 $ 129,900 Long-term notes payable Common stock, $10 par value Total liabilities and equity Retained earnings 82,500 9,375 255,000 $ 445,000 $ 75,250 101,500 163,500 104,750 163,500 131,100 $ 523,000 $ 445,000 For both the current year and one year ago, compute the following ratios: $ 37,800 50,200 54,000 5,000 230,500 $ 377,500 $ 51,250 83,500 163,500 79,250 $ 377,500 Compute the current ratio for each of the three years. Did the current ratio improve or worsen over the three-year period? Compute the acid-test ratio for each of the three years. Did the acid-test ratio improve or worsen over the three-year period? omplete this question by entering your answers in the tabs below.
[The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. Current Year 1 Year Ago 2 Years Ago At December 31 Assets Cash $ 31,800 Accounts receivable, net $ 35,625 62,500 Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable 89,500 112,500 10,700 278,500 98,500 $ 523,000 $ 129,900 Long-term notes payable Common stock, $10 par value Total liabilities and equity Retained earnings 82,500 9,375 255,000 $ 445,000 $ 75,250 101,500 163,500 104,750 163,500 131,100 $ 523,000 $ 445,000 For both the current year and one year ago, compute the following ratios: $ 37,800 50,200 54,000 5,000 230,500 $ 377,500 $ 51,250 83,500 163,500 79,250 $ 377,500 Compute the current ratio for each of the three years. Did the current ratio improve or worsen over the three-year period? Compute the acid-test ratio for each of the three years. Did the acid-test ratio improve or worsen over the three-year period? omplete this question by entering your answers in the tabs below.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 56P: The following selected information is taken from the financial statements of Arnn Company for its...
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