Simon Company’s year-end balance sheets follow.
At December 31 | 2017 | 2016 | 2015 | ||||||
Assets | |||||||||
Cash | $ | 27,923 | $ | 33,985 | $ | 32,679 | |||
Accounts receivable, net | 85,935 | 58,886 | 45,369 | ||||||
Merchandise inventory | 105,949 | 76,257 | 47,839 | ||||||
Prepaid expenses | 9,270 | 8,833 | 3,743 | ||||||
Plant assets, net |
258,832 |
242,650 | 210,670 | ||||||
Total assets | $ | 487,909 | $ | 420,611 | $ | 340,300 | |||
Liabilities and Equity | |||||||||
Accounts payable | $ | 119,060 | $ | 71,083 | $ | 46,267 | |||
Long-term notes payable secured
by mortgages on plant assets |
92,644 | 93,838 | 75,206 | ||||||
Common stock, $10 par value | 162,500 | 162,500 | 162,500 | ||||||
Retained earnings | 113,705 | 93,190 | 56,327 | ||||||
Total liabilities and equity | $ | 487,909 | $ | 420,611 | $ | 340,300 | |||
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.
1 | Current Ratio | = | Current Assets / Current Liabilities | ||
2017 | 2016 | 2015 | |||
Cash | $ 27,923 | $ 33,985 | $ 32,679 | ||
Accounts receivables, net | $ 85,935 | $ 58,886 | $ 45,369 | ||
Merchandise Inventory | $ 1,05,949 | $ 76,257 | $ 47,839 | ||
Prepaid expenses | $ 9,270 | $ 8,833 | $ 3,743 | ||
(a) | Current assets | $ 2,29,077 | $ 1,77,961 | $ 1,29,630 | |
Current Liabilities | |||||
Accounts Payable | $ 1,19,060 | $ 71,083 | $ 46,267 | ||
(b) | Current Liabilities | $ 1,19,060 | $ 71,083 | $ 46,267 | |
(a) / (b) | Current Ratio | 192% | 250% | 280% | |
2 | Acid Test Ratio | = | Current Assets (except Inventory) / Current Liabilities | ||
2017 | 2016 | 2015 | |||
Cash | $ 27,923 | $ 33,985 | $ 32,679 | ||
Accounts receivables, net | $ 85,935 | $ 58,886 | $ 45,369 | ||
Prepaid expenses | $ 9,270 | $ 8,833 | $ 3,743 | ||
(a) | Current assets | $ 1,23,128 | $ 1,01,704 | $ 81,791 | |
Current Liabilities | |||||
Accounts Payable | $ 1,19,060 | $ 71,083 | $ 46,267 | ||
(b) | Current Liabilities | $ 1,19,060 | $ 71,083 | $ 46,267 | |
(a) / (b) | Acid Test Ratio | 103% | 143% | 177% |
Simon Company’s year-end balance sheets follow. At December 31 2017 2016 2015 Assets Cash $ 27,923...
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 Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 26,1225 30,846 $ 34,119 79,574 53,981 44,167 97,135 70,612 47,513 8,498 8,261 3,791 240,461 225, 274 205,010 $ 451,799 $ 389,474 $ 334,600 $ 114,746 $ 65,821 $...
Simon Company’s year-end balance sheets follow. At December 31 2017 2016 2015 Assets Cash $ 35,662 $ 42,962 $ 44,296 Accounts receivable, net 107,579 75,183 56,767 Merchandise inventory 131,281 97,382 62,302 Prepaid expenses 11,484 11,054 4,731 Plant assets, net 330,773 305,125 266,304 Total assets $ 616,779 $ 531,706 $ 434,400 Liabilities and Equity Accounts payable $ 153,578 $ 90,757 $ 56,194 Long-term notes payable secured by mortgages on plant assets 118,274 124,738 97,922 Common stock, $10 par value 162,500 162,500...
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 Liabilities and Equity Accounts payable Longtern notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity 28,5315 33,684 $ 33,705 81,039 57, 196 46, 315 180,851 78,665 50, 317 8,912 8,579 3,745 264,248 238,756 213,318 $ 483,581 $ 416,880 $ 347,400 $ 119,208 $...
Simon Company’s year-end balance sheets follow. At December 31 2017 2016 2015 Assets Cash $ 29,607 $ 34,608 $ 35,690 Accounts receivable, net 89,500 62,600 57,300 Merchandise inventory 110,500 84,500 51,000 Prepaid expenses 9,535 9,085 3,965 Plant assets, net 262,674 241,807 212,545 Total assets $ 501,816 $ 432,600 $ 360,500 Liabilities and Equity Accounts payable $ 124,952 $ 73,109 $ 47,586 Long-term notes payable secured by mortgages on plant assets 94,341 99,498 79,671 Common stock, $10 par value 162,500 162,500...
Simon Company’s year-end balance sheets follow. At December 31 2017 2016 2015 Assets Cash $ 33,443 $ 39,092 $ 41,136 Accounts receivable, net 89,200 62,600 55,400 Merchandise inventory 115,000 85,000 56,000 Prepaid expenses 10,770 10,262 4,571 Plant assets, net 329,991 301,670 266,893 Total assets $ 578,404 $ 498,624 $ 424,000 Liabilities and Equity Accounts payable $ 141,142 $ 82,582 $ 54,849 Long-term notes payable secured by mortgages on plant assets 106,565 112,390 91,830 Common stock, $10 par value 162,500 162,500...
Simon Company’s year-end balance sheets follow. At December 31 2017 2016 2015 Assets Cash $ 31,600 $ 34,600 $ 36,000 Accounts receivable, net 89,200 64,400 55,700 Merchandise inventory 68,818 84,700 50,700 Prepaid expenses 10,613 9,438 3,852 Plant assets, net 369,769 251,862 193,748 Total assets $ 570,000 $ 445,000 $ 340,000 Liabilities and Equity Accounts payable $ 140,511 $ 73,701 $ 44,880 Long-term notes payable secured by mortgages on plant assets 109,303 104,397 74,389 Common stock, $10 par value 162,500 162,500...
Simon Company’s year-end balance sheets follow. At December 31 2017 2016 2015 Assets Cash $ 35,286 $ 41,246 $ 40,887 Accounts receivable, net 101,276 68,676 54,516 Merchandise inventory 124,839 95,381 58,060 Prepaid expenses 11,143 10,407 4,634 Plant assets, net 308,101 284,846 254,903 Total assets $ 580,645 $ 500,556 $ 413,000 Liabilities and Equity Accounts payable $ 143,135 $ 86,286 $ 55,606 Long-term notes payable secured by mortgages on plant assets 111,344 117,430 93,098 Common stock, $10 par value 162,500 162,500...
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 mortgages on plant assets 98,500 101,500 83,500 Common stock, $10 par value 163,500 163,500...
Simon Company’s year-end balance sheets follow. At December 31 2017 2016 2015 Assets Cash $ 36,335 $ 42,472 $ 42,524 Accounts receivable, net 107,459 73,568 56,120 Merchandise inventory 139,163 102,226 60,994 Prepaid expenses 12,179 11,377 4,773 Plant assets, net 333,281 312,096 273,889 Total assets $ 628,417 $ 541,739 $ 438,300 Liabilities and Equity Accounts payable $ 159,605 $ 89,723 $ 59,013 Long-term notes payable secured by mortgages on plant assets 120,505 123,354 94,927 Common stock, $10 par value 162,500 162,500...
Compute the acid-test ratio. Simon Company's year-end balance sheets follow At December 31 2017 2016 2015 Assets 36,109 43,061 $ 44,411 58,623 Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 107,828 75,357 134, 244 11,863 328,163 305,832 65,612 5,033 97,607 11,080 274,921 $618,207 $532,937 $448,600 Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings $153,934 $89,166 $ 58,031 113,898 162,500 162,500 162,500 125,027...