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Question(s) / Instruction(s):

Sanderson Company’s year-end balance sheets follow.

      

 At December 31                                             2012                                      2011                                      2010

 Assets:                                                                                                                                                

 Cash                                                                    $30,893                $36,111                $36,516 

 Accounts receivable, net                             85,191                                 63,194                                  47,724 

 Merchandise inventory                                                110,390                                79,453                                 52,377 

 Prepaid expenses                                          9,466                                    9,111                                    4,017 

 Plant assets, net                                             272,418                 250,371                                224,566                 

Total assets                                                       $508,358                             $438,240                             $365,200 

 

Liabilities and Equity:                                                                                                                                    

 Accounts payable                                          $127,847                             $74,063                $49,653 

 Long-term notes payable secured by

 Mortgages on plant assets                          95,571                                 102,811                 79,902 

 Common stock, $10 par value                    162,500                                162,500                                162,500 

 Retained earnings                                         122,440                 98,866                                 73,145 

Total liabilities and equity                         $508,358                             $438,240                             $365,200 

 

Required:

 (1)         Compute the current ratio for the year ended 2012, 2011, and 2010.

(2)          Compute the acid-test ratio for the year ended 2012, 2011, and 2010.

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