At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current Year 1 Year Ago 2 Years Ago $ 35,098 44,980 $ 27,703 82,750 103,012 9,376 256,285 $ 33,704 56,091 77,941 8,500 236,804 $ 69,804 $ 479,126 $ 413,040 Accounts payable Long-term notes payable $ 115,723 90,076 162,500 Retained earnings 110,827 Total liabilities and equity $ 479,126 $ 413,040 Common stock, $10 par value 95,949 163,500 83,787 49,854 3,824 210,444 $ 344,200 $ 46,797 76,068 163,500 57,835 $ 344,200 Compute the current ratio for each of the three years. Current Year: 1 Year Ago: 2 Years Ago: Numerator: Required 1A Required 1B Required 2A Required 2B Compute the acid-test ratio for each of the three years. Current Ratio Denominator: Numerator: + Short-term investments + Current Year: + 1 Year Ago: + 2 Years Ago: + + + + Current Ratio Current ratio HRecuredA Required 1B > Acid-test ratio 1 Denominator: < Required 1B Required 2B > 0 to 1 0 to 1 0 to 1 Acid-Test Rati Acid-test ratio = 0 to 1 = 0 to 1 = 0 to 1