Solution-Compute the current ratio for each of the three

Compute the current ratio for each of the three years

Assignment Help Financial Accounting

Reference no: EM132573454

Simon Company's year-end balance sheets follow.

At December 31	Current Yr	1 Yr Ago	2 Yrs Ago
Assets
Cash	$ 38,802	$ 43,594	$ 44,075
Accounts receivable, net	110,276	77,831	58,173
Merchandise inventory	138,651	99,794	63,219
Prepaid expenses	12,010	11,675	4,897
Plant assets, net	338,763	317,539	279,336
Total assets	$ 638,502	$ 550,433	$ 449,700
Liabilities and Equity
Accounts payable	$ 154,217	$ 92,093	60,548
Long-term notes payable secured by mortgages on plant assets	118,838	127,866	98,390
Common stock, $10 par value	162,500	162,500	162,500
Retained earnings	202,947	167,974	128,262
Total liabilities and equity	$ 638,502	$ 550,433	$ 449,700

Question 1: Compute the current ratio for each of the three years.

Question 2: Did the current ratio improve or worsen over the three year period?

Question 3: Compute the acid-test ratio for each of the three years.

Question 4: Did the acid-test ratio improve or worsen over the three year period?

Reference no: EM132573454

Questions Cloud

Concerning market segmentation and marketing research : Critical analysis of marketing theory concerning market segmentation and marketing research - critical review of how your chosen company could employ marketing

Matings between cream-colored individuals : What genotypic ratio are matings between cream-colored individuals likely to produce?

Calculate pv cost of borrowing alternative : Calculate PV cost of lease alternative. Calculate PV cost of borrowing/purchase alternative. C.T. All Ltd., a manufacturer of customized baseball souvenirs

Discuss the best way to use space in terms of position : Discuss the best way to use space in terms of position, size, and shape of every visible property. Data representation techniques that display overlapping.

Compute the current ratio for each of the three years : Did the current ratio improve or worsen over the three year period? Did the acid-test ratio improve or worsen over the three year period?

What is the realized and unrealized profits : On January 1, 2020, Cold sold depreciable assets to Hot at a gain of $10,000. What is the Realized and Unrealized Profits

What are the challenges to policy-making : Summarize chapter presented during the week. Identify the main point (as in "What's your point?"), thesis, or conclusion of the key ideas presented.

Compute the yield to maturity on the old issue : Octopus Transit has a $1,000 par value bond outstanding with 10 years to maturity. Compute the yield to maturity on the old issue

Google-An Entrepreneurial Juggernaut : Do you think Google was acting in an ethical manner when it "poached" talent from other firms, rather than using its own innovation that carried

User Account

All Pages

Compute the current ratio for each of the three years

Reference no: EM132573454

Reference no: EM132573454

Questions Cloud

Reviews

Write a Review

Financial Accounting Questions & Answers

Financial statement analysis and preparation

Shareholder of a company

Financial and accounting principles

Prepare a statement of cash flow using the direct method

Financial accounting assignment

Prepare general journal entries for goela

Principles of financial accounting

Prepare general journal entries to record the transactions

Global reporting initiative

Explain the iasb conceptual frameworks

Determine the company''s financial statements

Computation of free cash flow

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT