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 $ 25,493 76,147 $ 30,711 52,147 $ 31,978 94,793 8,545 235,918 $ 440,896 Liabilities and Equity Accounts payable $ 109,783 $ 63,592 Long-term notes payable 82,060 Common stock, $10 par value Retained earnings 163,500 85,553 88,293 163,500 64,698 71,019 7,742 218,464 $ 380,083 $ 313,600 $ 40,567 68,613 163,500 40,567 45,422 3,519 192,114 Total liabilities and equity $ 440,896 $ 380,083 40,920 $313,600 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? 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 Numerator: Current assets Denominator: Current Ratio Current liabilities == Current ratio Current Year: = 0 to 1 1 Year Ago: 2 Years Ago: = 0 to 1 0 to 1