1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sashaice [31]
3 years ago
12

Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago At December 31 Assets Cash Accounts receivable, ne

t 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 $ 29,328 83,351 103,760 9,078 257,087 $ 482,604 $ 32,285 $ 34, 323 57,663 45,764 76,967 50, 226 8,737 3,775 240,386 216,112 $ 416,038 $ 350, 200 $ 120,168 $ 70,310 $ 44,840 88,915 162,500 111,021 $ 482,604 96,646 75,072 162,500 162,500 86,582 67, 788 $ 416,038 $ 350, 200 (1-a) Compute the current ratio for each of the three years. (1-b) Did the current ratio improve or worsen over the three year period? (2-a) Compute the acid-test ratio for each of the three years. (2-b) Did the acid-test ratio improve or worsen over the three year period?

Business
1 answer:
weqwewe [10]3 years ago
8 0

Answer:

1a. Current ratio = Current assets / Current Liabilities

Current year = $224,517 / $120168 = 1.88 : 1

1 years ago = $175,652 / $70,310 = 2.50 : 1

2 years ago =$134,088 / $44,840 = 2.99 : 1

1b. The Current ratio worse over three years period

2a. Acid test ratio = (Cash + Investment + Account Receivables) / Current liabilities

Current year = ($29,328 + $0 + $83,351) / $120,168 = 0.94 : 1

1 year ago = ($32,285 + $0 + $57,663) / $70,310 = 1.28 : 1

2 year ago = ($34,323 + $0 + $45,764) / $44,840 = 1.79 : 1

2b. The Acid test ratio are worse over three years period

You might be interested in
Kingbird Company is negotiating to lease a piece of equipment to MTBA, Inc. MTBA requests that the lease be for 9 years. The equ
kolbaska11 [484]

Answer:

$ 7,994

Explanation:

Fair Value of lease 60,000

Less Present value of garanteed residual value$ 2,368

($4000*1/1.06^9)

Amount to be recovered through periodic payment $ 57,632

PVAD (9 years ,6%) 7.20979

Minimum Lease at the beginning of each year (C/D) $ 7,994

Therefore the amount of the annual rental payments Kingbird demands of MTBA, assuming each payment will be made at the beginning of each year and Kingbird wishes to earn a rate of return on the lease of 6 $7,994

8 0
3 years ago
Consider This) Susie purchased a nonrefundable ticket to a soccer match for $20. It will cost her $10 worth of gas and wear and
kumpel [21]

Answer:

The $20 ticket to the match.

Explanation:

The sunk cost would be the $20 ticket to the match.

3 0
3 years ago
A manufacturing company incurs direct materials costs of $6 per unit. The total direct materials cost is______when the company m
Alja [10]

Answer:

$12,000

Explanation:

The manufacturing company has a direct materials cost of $6

The company manufactures 2,000 unit

Therefore total direct material cost can be calculated as follows

= 2,000×6

= $12,000

Hence the total direct material cost of $12,000

4 0
3 years ago
How does Truth In Lending protect consumers when shopping for a loan?
Ainat [17]
<span>How does Truth In Lending protect consumers when shopping for a loan</span>
3 0
3 years ago
Read 2 more answers
Stores such as T. J. Maxx, Burlington Coat Factory, and Marshalls buy manufacturers' seconds, overruns, returns, and off-season
Rama09 [41]

Answer: off price retailers

Explanation:  In simple words, it refers to the retailers that sells high quality products at relatively lower prices than market. The key to their business structure is the discount they offer as the majority of product they sell are of second hand quality or are off seasoned.

    They procure material directly from the suppliers in the form of scrap etc and then sells it to retailer at heavy discounts. Hence from the above we can conclude that the correct answer is off price retailers.

4 0
3 years ago
Other questions:
  • Payback occurs when: a. the net cumulative benefits equal the net cumulative costs. b. the net costs are lower than the cumulati
    11·1 answer
  • What type of economy is an economic system in which private businesses can operate freely with minimal state control?Henry lives
    14·1 answer
  • On january​ 1, 2017, finch company issued​ $89,000 of​ five-year, 8% bonds when the market interest rate was​ 12%. the issue pri
    11·1 answer
  • Monique buys a new television for​ $795. she receives consumer surplus of​ $355 from the purchase. how much does monique value h
    6·1 answer
  • Carlos Company had beginning inventory of $80,000, ending inventory of $110,000, cost of goods sold of $285,000, and sales reven
    15·1 answer
  • What best states the purpose of advertising?(Econ)
    13·1 answer
  • Services had net income for the month of October of $ 23 comma 040. Assets as of the beginning and end of the month totaled $ 36
    12·1 answer
  • Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisio
    14·1 answer
  • Sheffield Corp. had credit sales of $1696000. The beginning accounts receivable balance was $175000 and the ending accounts rece
    14·1 answer
  • The internal rate of return for a project will increase if: the initial cost of the project can be reduced. the total amount of
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!