Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Current Year $ 27,701 81, ese 100,943 8,832 246,300 $ 464,856 $ 114,592 85,645 162,500 102,119 $ 464,856 1 Year Ago $ 32,700 57,786 73,395 8,500 228,357 $ 400,738 $ 66,370 93,091 162,500 78,777 $ 400,738 (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? 2 Years Ago $ 32,088 43,217 46,491 3,637 201,967 $ 327,400 $ 42,352 71,632 163,500 49,916 $ 327,400
Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Current Year $ 27,701 81, ese 100,943 8,832 246,300 $ 464,856 $ 114,592 85,645 162,500 102,119 $ 464,856 1 Year Ago $ 32,700 57,786 73,395 8,500 228,357 $ 400,738 $ 66,370 93,091 162,500 78,777 $ 400,738 (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? 2 Years Ago $ 32,088 43,217 46,491 3,637 201,967 $ 327,400 $ 42,352 71,632 163,500 49,916 $ 327,400
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 17P: Comprehensive: Income Statement and Supporting Schedules The following s a partial list of the...
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