Refer to Simon Company’s balance sheets in Exercise 17-6.

(1) Compute the current ratio for each of the three years. Did the current ratio improve or worsen over the three-year period? 

(2) Compute the acid-test ratio for each of the three years. Did the acid-test ratio improve or worsen over the three-year period? Round ratios to two decimals.

Data from Exercise 17-6

Common-size and trend percents for Roxi Company’s sales, cost of goods sold, and expenses follow. Determine whether net income increased, decreased, or remained unchanged in this three-year period.