Sanderson Company’s year end balance sheets follow.
| At December 31 | 2012 | 2011 | 2010 | |||||||
| Assets | ||||||||||
| Cash | $ | 29,607 | $ | 35,657 | $ | 35,343 | ||||
| Accounts receivable, net | 86,677 | 62,399 | 46,653 | |||||||
| Merchandise inventory | 106,800 | 82,456 | 51,708 | |||||||
| Prepaid expenses | 9,342 | 8,993 | 3,848 | |||||||
| Plant assets, net | 274,457 | 247,463 | 219,448 | |||||||
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| Total assets | $ | 506,883 | $ | 436,968 | $ | 357,000 | ||||
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| Liabilities and Equity | ||||||||||
| Accounts payable | $ | 126,214 | $ | 72,371 | $ | 46,182 | ||||
| Long term notes payable secured by mortgages on plant assets |
95,294 | 102,513 | 78,108 | |||||||
| Common stock, $10 par value | 162,500 | 162,500 | 162,500 | |||||||
| Retained earnings | 122,875 | 99,584 | 70,210 | |||||||
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| Total liabilities and equity | $ | 506,883 | $ | 436,968 | $ | 357,000 | ||||
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| (1) |
Compute the current ratio for the year ended 2012, 2011, and 2010. (Round your answers to 2 decimal places.) |
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| (2) |
Compute the acid test ratio for the year ended 2012, 2011, and 2010. (Round your answers to 2 decimal places.) |
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