At December 31	Current Year	1 Year Ago	2 Years Ago
Assets
Cash	$ 32,605	$ 39,278	$ 40,506
Accounts receivable, net	99,320	67,376	53,473
Merchandise inventory	117,601	89,033	58,099
Prepaid expenses	11,036	9,902	4,412
Plant assets, net	303,337	280,531	248,610
Total assets	$ 563,899	$ 486,120	$ 405,100
Liabilities and Equity
Accounts payable	$ 139,007	$ 82,976	$ 54,543
Long-term notes payable	102,833	112,926	89,527
Common stock, $10 par value	162,500	162,500	162,500
Retained earnings	159,559	127,718	98,530
Total liabilities and equity	$ 563,899	$ 486,120	$ 405,100

Compute the acid-test ratio for each of the three years.

Simon Company's year-end balance sheets follow. For both the current year and one year ago, compute the following ratios: Exercise 13-7 (Algo) Analyzing liquidity LO P3 (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. Compute the acid-test ratio for each of the three years