3. Award: 2.14 points Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 28,527 $ 34,366 $ 36,898 Accounts receivable, net 84,368 59,546 48,715 Merchandise inventory 07,137 80,259 50,849 Prepaid expenses 9,093 8,932 4,060 Plant assets, net 264,253 242,223 224,878 Total assets $ 493,378 $ 425,326 $ 365,400 Liabilities and Equity Accounts payable $ 121,623 $ 71,161 $ 47,750 Long-term notes payable secured by mortgages on plant assets 93,683 98,803 79,138 Common stock, $10 par value 62,50 62,500 162,500 Retained earnings 115,572 92,862 76,012 Total liabilities and equity $ 493,378 $ 425,326 $ 365,400 (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 Ratio Choose Numerator: / Choose Denominator: Current Ratio 1 Current ratio Current Yr: to 1 1 Yr Ago: 1 11 1 to 1 2 Yrs Ago: to 1 Required 1A Required 1B > References Expanded table Difficulty: 3 Hard Learning Objective: 17-P3 Define and apply ratio analysis