1 Year Ago 2 Years Ago Simon Company's year-end balance sheets follow. At December 31 Current Year Assets Cash $ 30,198 Accounts receivable, net 87,523 Merchandise inventory 112,245 Prepaid expenses 9,628 Plant assets, net 272,239 Total assets $ 511,833 Liabilities and Equity Accounts payable $ 123,623 Long-term notes payable 94,300 Common stock, $10 par value 163,500 Retained earnings 130,410 Total liabilities and equity $ 511,833 $ 34,946 63,626 80, 812 9,266 252,585 $ 441,235 $ 37,516 51,012 54,344 4,210 228,118 $ 375,200 $ 73,077 103,514 162,500 102,144 $ 441,235 $ 50,517 84,578 162,500 77,605 $ 375,200 For both the current year and one year ago, compute the following ratios: Exercise 17-7 (Algo) Analyzing liquidity LO P3 (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? Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 2A Required 2B Compute the current ratio for each of the three years. Numerator: Current Ratio Denominator: 11 = Current Year: 1 Year Ago: 2 Years Ago Current Ratio Current ratio 0 to 1 0 to 1 0 to 1 Required 1A Required 1B > Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Did the current ratio improve or worsen over the three-year period? Current ratio Improved Worsened Complete this question by entering your answers in the tabs below. Required 1A Required 10 Required 2A Required 28 Compute the acid-test ratio for each of the three years. Acid-test ratio Numerator Short-term investments Denominator Current Year 1 Year Ago 2 Years Ago - Acid-Test Ratio Acid-test ratio 0 to 1 0 to 1 0 tot - Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Did the acid-test ratio improve or worsen over the three-year period? Acid-test ratio