2 Years Ago 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 Assets Cash $ 31,825 $ 37,937 Accounts receivable, net 88,586 64,457 Merchandise inventory 114,825 85,175 Prepaid expenses 10, 147 9,668 Plant assets, net 288,686 263, 167 Total assets $ 534,869 $ 460,404 Liabilities and Equity Accounts payable $ 135,643 $ 77,808 Long-term notes payable 100,405 108,011 Common stock, $10 par value 163,500 163,500 Retained earnings 134,521 111,085 Total liabilities and equity $ 534,069 $ 460,404 $ 37,983 50,644 56,705 4,177 241,991 $ 391,500 $ 53,228 84,791 163,500 89,981 $ 391,500 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? Required 1A Required 1B Required 2A Required 2B Compute the current ratio for each of the three years. Current Ratio Denominator: II Numerator: Current Ratio Current ratio 11 to 1 Current Year: to 1 1 Year Ago: 2 Years Ago: 1111 to 1 ces 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 (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 Did the acid-test ratio improve or worsen over the three-year period? Acid-test ratio