Compute the current ratio for each of the three years

Assignment Help Accounting Basics
Reference no: EM132897220

Question - Simon Company's year-end balance sheets follow.

 

At December 31

Current Yr

1 Yr Ago

2 Yrs Ago

Assets Cash

$36,725

$42,928

$42,968

Accounts receivable, net

106,440

75,876

59,026

Merchandise inventory

131,152

101,257

62,875

Prepaid expenses

11,945

11,607

4,871

Plant assets, net

336,196

304,934

268,660

Total assets

$622,458

$536,602

$438,400

Liabilities and Equity Accounts payable

$154,992

$92,499

$57,290

Long-term notes payable secured by mortgages on plant assets

117,022

123,418

97,855

Common stock, $10 par value

162,500

162,500

162,500

Retained earnings

187,944

158,185

120,755

Total liabilities and equity

$622,458

$536,602

$438,400

Required -

(1) Compute the current ratio for each of the three years.

(2) Did the current ratio improve or worsen over the three year period?

(3) Compute the acid-test ratio for each of the three years.

(4) Did the acid-test ratio improve or worsen over the three year period?

Reference no: EM132897220

Questions Cloud

Forecast future value : Argentine Peso' Anguish. As illustrated in the graph, the Argentine peso moved from its fixed exchange rate of Ps1.00/$ to over Ps2.00/$ in a matter of days in
Give an example of a change in ohs issue : Give an example of a change in OHS issue at your organization, then record the process of the change from initiation to completion
How can organizational culture influence creativity : How can organizational culture influence creativity both negatively and positively? Provide examples to support your response.
Getting a prerequisite error while registering for classes : Using Degree Works can help you explore different majors/minors and track your progress toward graduation. Watch the video attached and answer the following que
Compute the current ratio for each of the three years : Simon Company's year-end balance sheets follow. Compute the current ratio for each of the three years. Compute the acid-test ratio for each of the three years
Drawing on mintzberg managerial roles : Footprint is clearly a growing company. Drawing on Mintzberg Managerial roles and Tannenbaum & Schmidt's leadership continuum, I need help with finding evid
BA5004 Business Research Methods Assignment : BA5004 Business Research Methods Assignment Help and Solution, London Metropolitan University - Assessment Writing Service
Identify and state the significance of the vertical mosaic : Identify and state the significance of The Vertical Mosaic.
What is induced strategic action : What is induced strategic action? Give an example What is autonomous strategic action? Give an example.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd