[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.
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
Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity
Section: Chapter Questions
Problem 6E: Balance Sheet Baggett Companys balance sheet accounts and amounts as of December 31, 2019, are shown...
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