Simon Company\'s year-end balance sheets follow. 2017 2016 2015 At December 31 A

Question

Simon Company's year-end balance sheets follow. 2017 2016 2015 At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by $ 35,063 $ 38,976 $ 43,573 55, 819 59,435 4,841 267,832 $ 582,629 $ 502,266 $431,500 101,622 122,760 10, 959 312,225 71,724 95, 707 10,231 285, 628 $ 143,624 $85,732 $ 58,667 mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity 97,269 162,500 162,500 3,064 $ 582,629 $ 502,266 431,500 108, 439 118,987 162,500 168,066 135,04711 1. Compute the current ratio for the year ended 2017, 2016, and 2015. 2. Compute the acid-test ratio for the year ended 2017, 2016, and 2015.

Explanation / Answer

Current Ratio Choose Numerator: / Choose Denominator: = Current Ratio Current assets / Current liabilities = Current ratio 2015 $163,668 / $58,667 = 2.79 to 1 2016 $216,638 / $85,732 = 2.53 to 1 2017 $270,404 / $143,624 = 1.88 to 1 2 Acid-Test Ratio Choose Numerator: / Choose Denominator: = Acid-Test Ratio Cash + Short-term investments + Current receivables / Current liabilities = Acid-test ratio 2015 $43,573 + 0 + $55,819 / $58,667 = 1.69 to 1 2016 $38,976 + 0 + $71,724 / $85,732 = 1.29 to 1 2017 $35,063 + 0 + $101,622 / $143,624 = 0.95 to 1

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.