3 Part 2 of 6 1.87 points 04:2116 eBook Hin References Required information [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 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity 2 Years Ago Current Year 1 Year Ago $31,800 89,500 $35,625 $ 37,800 62,500 82,500 112,500 10,700 278,500 $ 523,000 $ 129,900 98,500 163,500 131,100 $ 523,000 9,375 255,000 $ 445,000 $ 75,250 101,500 163,500 104,750 $ 445,000 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? 50,200 54,000 5,000 230,500 $377,500 $51,250 83,500 163,500 79,250 $ 377,500 C