nces Required information [The following information applies to the questions displayed below.] 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 Current Year 1 Year Ago 2 Years Ago $ 30,845 89,399 114,673 10,034 283,130 $ 36,055 $ 39,075 65,009 51,088 83,378 9,369 261,431 $ 528,081 $ 455,242 $ 128,862 Long-term notes payable Common stock, $10 par value Total liabilities and equity Retained earnings 96,301 $ 76,167 103,659 163,500 111,916 163,500 139,418 $ 528,081 $ 455,242 For both the current year and one year ago, compute the following ratios: 53,326 4,173 235,538 $ 383,200 $ 49,065 85,534 162,500 86,101 $ 383,200 (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? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Compute the current ratio for each of the three years. Current Year: 1 Year Ago: 2 Years Ago: Current Ratio Numerator: 1 Denominator: 1 11 Current Ratio Current ratio S $ $ 128,862 76,167 = 49,065 = = to 1 0.00 to 1 0.00 to 1 Required 1A Required 1B >
nces Required information [The following information applies to the questions displayed below.] 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 Current Year 1 Year Ago 2 Years Ago $ 30,845 89,399 114,673 10,034 283,130 $ 36,055 $ 39,075 65,009 51,088 83,378 9,369 261,431 $ 528,081 $ 455,242 $ 128,862 Long-term notes payable Common stock, $10 par value Total liabilities and equity Retained earnings 96,301 $ 76,167 103,659 163,500 111,916 163,500 139,418 $ 528,081 $ 455,242 For both the current year and one year ago, compute the following ratios: 53,326 4,173 235,538 $ 383,200 $ 49,065 85,534 162,500 86,101 $ 383,200 (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? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Compute the current ratio for each of the three years. Current Year: 1 Year Ago: 2 Years Ago: Current Ratio Numerator: 1 Denominator: 1 11 Current Ratio Current ratio S $ $ 128,862 76,167 = 49,065 = = to 1 0.00 to 1 0.00 to 1 Required 1A Required 1B >
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter6: Accounting For Merchandising Businesses
Section: Chapter Questions
Problem 5PA: The following selected accounts and their current balances appear in the ledger of Clairemont Co....
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Required information
[The following information applies to the questions displayed below.]
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
Current Year 1 Year Ago 2 Years Ago
$ 30,845
89,399
114,673
10,034
283,130
$ 36,055
$ 39,075
65,009
51,088
83,378
9,369
261,431
$ 528,081
$ 455,242
$ 128,862
Long-term notes payable
Common stock, $10 par value
Total liabilities and equity
Retained earnings
96,301
$ 76,167
103,659
163,500
111,916
163,500
139,418
$ 528,081
$ 455,242
For both the current year and one year ago, compute the following ratios:
53,326
4,173
235,538
$ 383,200
$ 49,065
85,534
162,500
86,101
$ 383,200
(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?
Complete this question by entering your answers in the tabs below.
Required 1A Required 1B Required 2A
Required 2B
Compute the current ratio for each of the three years.
Current Year:
1 Year Ago:
2 Years Ago:
Current Ratio
Numerator:
1
Denominator:
1
11
Current Ratio
Current ratio
S
$
$
128,862
76,167 =
49,065 =
=
to 1
0.00 to 1
0.00 to 1
Required 1A
Required 1B >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F04c96e4e-b91d-49ef-879c-21a6266a77ca%2Ff7bf23c6-3812-4c42-89f2-b838ecce42b0%2F8ykslcw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:nces
Required information
[The following information applies to the questions displayed below.]
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
Current Year 1 Year Ago 2 Years Ago
$ 30,845
89,399
114,673
10,034
283,130
$ 36,055
$ 39,075
65,009
51,088
83,378
9,369
261,431
$ 528,081
$ 455,242
$ 128,862
Long-term notes payable
Common stock, $10 par value
Total liabilities and equity
Retained earnings
96,301
$ 76,167
103,659
163,500
111,916
163,500
139,418
$ 528,081
$ 455,242
For both the current year and one year ago, compute the following ratios:
53,326
4,173
235,538
$ 383,200
$ 49,065
85,534
162,500
86,101
$ 383,200
(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?
Complete this question by entering your answers in the tabs below.
Required 1A Required 1B Required 2A
Required 2B
Compute the current ratio for each of the three years.
Current Year:
1 Year Ago:
2 Years Ago:
Current Ratio
Numerator:
1
Denominator:
1
11
Current Ratio
Current ratio
S
$
$
128,862
76,167 =
49,065 =
=
to 1
0.00 to 1
0.00 to 1
Required 1A
Required 1B >
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