Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
Bartleby Related Questions Icon

Related questions

Question

Please do not give solution in image format thanku 

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 >
expand button
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 >
Expert Solution
Check Mark
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Text book image
Survey of Accounting (Accounting I)
Accounting
ISBN:9781305961883
Author:Carl Warren
Publisher:Cengage Learning
Text book image
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Text book image
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Text book image
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
Text book image
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning