Check my work 3 Simon Company\'s year-end balance sheets follow. At December 31
ID: 2397588 • Letter: C
Question
Check my work 3 Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets 2017 2 $ 27,019 31,905 32,570 42,983 48,623 3,767 247,297 230,255 207,757 $467,294 402,840 335,700 points 80,706 103,482 8,790 57,526 74,525 8,629 eBook Hint Print Liabilities and Equity Accounts payable Long-term notes payable secured by $115,193 $ 66,718 * 43,869 mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity 86, 094 90,800 72,706 162,500 162,500 162, 500 56,625 $467,294 402,840 335,700 103,507 82,822 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 Complete this question by entering your answers in the tabs belowExplanation / Answer
Answer 1.
Current Ratio = (Cash + Accounts Receivable, net + Merchandise Inventory + Prepaid Expenses) / Accounts Payable
2017:
Current Ratio = ($27,019 + $80,706 + $103,482 + $8,790) / $115,193
Current Ratio = 1.91 : 1
2016:
Current Ratio = ($31,905 + $57,526 + $74,525 + $8,629) / $66,718
Current Ratio = 2.59 : 1
2015:
Current Ratio = ($32,570 + $42,983 + $48,623 + $3,767) / $43,869
Current Ratio = 2.92 : 1
Answer 2.
Quick Ratio = (Cash + Accounts Receivable, net) / Accounts Payable
2017:
Quick Ratio = ($27,019 + $80,706) / $115,193
Quick Ratio = 0.94 : 1
2016:
Quick Ratio = ($31,905 + $57,526) / $66,718
Quick Ratio = 1.34 : 1
2015:
Quick Ratio = ($32,570 + $42,983) / $43,869
Quick Ratio = 1.72 : 1