Accounting Question - 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
|
32,500
|
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-tree notes payable secured by mortgages on plant assets
|
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.