4 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. Current Year 1 Year Ago 2 Years Ago $ 40,175 70,306 95,748 $ 34,370 102,663 129,079 10,955 317,356 10,869 295,336 $ 512,434 $ 40,601 54,693 61,238 4,790 261,478 $ 422,800 $ 594,423 Liabilities and Equity Accounts payable. $ 143,571 $ 84,003 Long-term notes payable Common stock, $10 par value Retained earnings 112,869 163,500 174,483 Total liabilities and equity $ 594,423 $ 512,434 $ 422,800 117,860 163,500 147,071 $ 56,926 94,373 162,500 109,001 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? 9 Dray 9 10 11 of 11 Next > Required Information (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. 0 to 1 0 to 1 0 to 1 Required Information (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 current ratio improve or worsen over the three-year period? Current ratio < Required 1A Required 2A > Required information. haste is the s (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 18 Required 2A Required 28 Compute the acid-test ratio for each of the three years. Current Year: 1 Year Ago: 2 Years Ago: Numerator: +Short-term investments + + Acid-test ratio Denominator: Ac < Required 1B Required 2B > (2-b) Did the acid-test ratio improve or worsen over the 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 < Required 2A Required 28