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0.5 points Simon Company's year-end balance sheets follow. At December 31 Current Year 1 Year 2 Years Ago Ago Assets Cash $ $ $
0.5 points Simon Company's year-end balance sheets follow. At December 31 Current Year 1 Year 2 Years Ago Ago Assets Cash $ $ $ 28,824 34,036 36,185 Accounts receivable, net 86,950 59,563 48,734 Merchandise inventory 105,036 77,913 52,951 Prepaid expenses 9,282 8,934 4,142 Plant assets, net 268,417 249,303 227,188 $ Total assets $ $ 498,509 429,749 369,200 Liabilities and Equity Accounts payable $ $ +A $ 125,370 71,175 49,709 Long-term notes payable 96,531 100,819 81,593 Common stock, $10 par value 163,500 163,500 162,500 Retained earnings 113,108 94,255 75,398 Total liabilities and $ $ $ equity 498,509 429,749 369,200 For both the current year and one year ago, compute the following ratios: (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?
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