(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?

Required information Use the following information for the Exercises below. (Algo) (The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. At December 31 Current Year 1 Year Ago 2 Years Ago Assets Cash $ 26,691 $ 29.963 $ 30.618 Accounts receivable. net 75. 060 55, 139 40.000 Merchandise inventory 94.374 70.719 44.804 Prepaid expenses 8.510 8. 109 3.402 Plant assets.net 243 271 222. 196 193 576 Total assets $ 447,906 $ 386, 126 $ 312,400 Liabilities and Equity Accounts payable $ 108, 183 $ 66.560 $ 41,649 Long-term notes payable 85, 890 88, 809 66.969 Common stock. $10 par value 163,500 163, 500 162.500 Retained earnings 90 333 67257 41 282 Total liabilities and equity $ 447. 906 $ 386, 126 $ 312 400 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? Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 2A Required 28 Compute the current ratio for each of the three years. Current Ratio Numerator: Denominator Current Year: 1 Year Ago: 2 Years Ago: Current Ratio Current ratio 0 to 1 0 to 1 0 to 1 Required SA Required 1B > Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 28 Compute the acid-test ratio for each of the three years. Acid-test ratio Denominator: Numerator: Short-term investments + Current Year: 1 Year Ago: 2 Years Ago: ##### Acid-Test Ratio Acid-test ratio Oto 1 0 to 1 oto 1 +