2 points 1 eBook Hint Print 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 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 $ 27,157 78,709 98,962 9,010 251,099 $ 31,423 55,552 71,925 8,669 233,239 $ 400,808 $ 464,937 $ 114,612 Long-term notes payable Common stock, $10 par value References Retained earnings 88,282 163,500 98,543 Total liabilities and equity $ 464,937 $ 400,808 $ 67,059 92,186 162,500 79,063 For both the current year and one year ago, compute the following ratios: $ 33,394 43,652 47,899 3,601 202,154 $ 330,700 $ 44,089 72,354 163,500 50,757 $ 330,700 Exercise 13-7 (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 1B Required 2A Required 2B Compute the current ratio for each of the three years. Current Year: 1 Year Ago: 2 Years Ago: Numerator: Current Ratio Denominator: = Current Ratio = Current ratio = to 1 to 1 to 1 < Required 1A Required 1B >