1. Compute the current ratio for the year ended 2017, 2016, and 2015. 2. Compute
ID: 2561923 • Letter: 1
Question
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.
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 $ 28,587 $32,748 $ 35,853 45,947 48,929 3,945 216,926 $ 484,533 $ 417,701 $ 351,600 59,063 76,502 8,859 259,589 240,529 82,027 105,216 9,114 Liabilities and Equity Accounts payable Long-term notes payable secured by $ 117,029 $ 70,591 $ 45,947 mortgages on plant assets Common stock, $10 par value Retained earnings Total 1iabilities and equity 98,953 162,500 85,657 $ 484,533 $ 417,701 92,003 162,500 113,001 80,035 162,500 63,118 351,600 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 2015Explanation / Answer
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
2017 2016 2015 Cash 28587 32748 35853 account receivable 82027 59063 45947 Merchandise inventory 105216 76502 48929 Prepaid Expenses 9114 8859 3948 Total current assets 224944 177172 134677 current liabilities 117029 70591 45947 Current ratio (current assetss/current liabilities) 1.92:1 2.51:1 2.93:1Related Questions
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