compute current ratio and acid test
Simon Company’s year-end balance sheets follow.
|
At December 31 |
2017 |
2016 |
2015 |
||||||
|
Assets |
|||||||||
|
Cash |
$ |
31,800 |
$ |
35,625 |
$ |
37,800 |
|||
|
Accounts receivable, net |
89,500 |
62,500 |
50,200 |
||||||
|
Merchandise inventory |
112,500 |
82,500 |
54,000 |
||||||
|
Prepaid expenses |
10,700 |
9,375 |
5,000 |
||||||
|
Plant assets, net |
278,500 |
255,000 |
230,500 |
||||||
|
Total assets |
$ |
523,000 |
$ |
445,000 |
$ |
377,500 |
|||
|
Liabilities and Equity |
|||||||||
|
Accounts payable |
$ |
129,900 |
$ |
75,250 |
$ |
51,250 |
|||
|
Long-term notes payable secured by |
98,500 |
101,500 |
83,500 |
||||||
|
Common stock, $10 par value |
163,500 |
163,500 |
163,500 |
||||||
|
Retained earnings |
131,100 |
104,750 |
79,250 |
||||||
|
Total liabilities and equity |
$ |
523,000 |
$ |
445,000 |
$ |
377,500 |
|||
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.
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