1 6 Part 2 of 5 points eBook + Hint Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Current Year 1 Year Ago 2 Years Ago $ 33,206 91,524 116,261 10,589 300,203 $ 551,783 104,773 162,500 148,490 $ 136,020 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity $ 39,196 64,597 89,760 9,689 272,433 $ 475,675 $ 82,801 109,405 163,500 119,969 $ 551,783 $ 475,675 For both the current year and one year ago, compute the following ratios: $ 40,829 53,381 55,720 4,360 246,110 $ 400,400 $ 53,910 85,834 162,500 98,156 $ 400,400 Ask Exercise 17-7 (Algo) Analyzing liquidity LO P3 Print (1-a) Compute the current ratio for each of the three years. References (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? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Compute the current ratio for each of the three years. Current Year: 1 Year Ago: 2 Years Ago: Current Ratio Numerator: Denominator: = Current Ratio Net sales = Current ratio = 0 to 1 to 1 to 1 < Required 1A Required 1B > Check my work