Show \"Correct Answers\" Step by Step Please! Simon Company’s year-end balance s
ID: 2437288 • Letter: S
Question
Show "Correct Answers" Step by Step Please!
Simon Company’s year-end balance sheets follow.
294,363
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.
294,363
271,766 245,976 Total assets $ 547,847 $ 472,282 $ 401,600 Liabilities and Equity Accounts payable $ 136,414 $ 80,614 $ 51,951 Long-term notes payable secured bymortgages on plant assets 99,905 111,884 90,529 Common stock, $10 par value 162,500 162,500 162,500 Retained earnings 149,028 117,284 96,620 Total liabilities and equity $ 547,847 $ 472,282 $ 401,600
Explanation / Answer
Answers
2017
2016
2015
Quick Assets:
Cash
$ 31,677.00
$ 37,783.00
$ 38,963.00
Accounts receivable, net
$ 92,745.00
$ 66,119.00
$ 54,602.00
Total Quick Assets
$ 124,422.00
$ 103,902.00
$ 93,565.00
Add:
Merchandise inventory
$ 118,965.00
$ 86,498.00
$ 57,597.00
Prepaid expenses
$ 10,097.00
$ 10,116.00
$ 4,462.00
$ 129,062.00
$ 96,614.00
$ 62,059.00
Total Current Assets
$ 253,484.00
$ 200,516.00
$ 155,624.00
1
Choose Numerator
/
Choose Denominator
=
Current Ratio
Current Assets
/
Current Liabilities
=
Current Ratio
2017
$ 253,484.00
/
$ 136,414.00
=
1.86
2016
$ 200,516.00
/
$ 80,614.00
=
2.49
2015
$ 155,624.00
/
$ 51,951.00
=
3.00
2
Choose Numerator
/
Choose Denominator
=
Acid Test Ratio
Cash
+
Accounts receivable, net
+
/
Current Liabilities
=
Acid Test Ratio
2017
$ 31,677.00
+
$ 92,745.00
+
/
$ 136,414.00
=
0.91
2016
$ 37,783.00
+
$ 66,119.00
+
/
$ 80,614.00
=
1.29
2015
$ 38,963.00
+
$ 54,602.00
+
/
$ 51,951.00
=
1.80
2017
2016
2015
Quick Assets:
Cash
$ 31,677.00
$ 37,783.00
$ 38,963.00
Accounts receivable, net
$ 92,745.00
$ 66,119.00
$ 54,602.00
Total Quick Assets
$ 124,422.00
$ 103,902.00
$ 93,565.00
Add:
Merchandise inventory
$ 118,965.00
$ 86,498.00
$ 57,597.00
Prepaid expenses
$ 10,097.00
$ 10,116.00
$ 4,462.00
$ 129,062.00
$ 96,614.00
$ 62,059.00
Total Current Assets
$ 253,484.00
$ 200,516.00
$ 155,624.00