4. Exercise 17-7 Analyzing liquidity LO P3 Simon Company's year-end balance sheets follow. 0.66 points Current Yr 1 Yr Ago 2 Yrs Ago eBook 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 27,060 81,628 97,601 8,714 252,993 $ 467,996 $ 32,598 $ 33, 284 57,612 44,379 76,876 48,223 8,642 3,848 227,717 209,866 $ 403,445 $ 339,600 Hint $ 116,531 $ 67,500 $ 44,379 Print 90,623 162,500 98,342 $ 467,996 90,009 162,500 83,436 $ 403, 445 73,551 162,500 59,170 339,600 References (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 = to 1 Current Yr: 1 Yr Ago: 2 Yrs Ago: to 1 / to 1 Required 1A Required 1B > Required 1A Required 1B Required 2A Required 2B Did the current ratio improve or worsen over the three year period? Current ratio Required 1A Required 1B Required 2A Required 2B Compute the acid-test ratio for each of the three years. Acid-test ratio Choose Numerator: | Choose Denominator: Acid-Test Ratio + + / = Acid-test ratio + + II Current Yr: 1 Yr Ago: 2 Yrs Ago: 0 to 1 0 to 1 + + 1 + + 7 = 0 to 1 AN Required 1A Required 1B Required 2A Required 2B Did the acid-test ratio improve or worsen over the three year period? Acid-test ratio