b

At December 31 Current Year 1 Year Ago 2 Years Ago Assets Cash $ 29,356 $ 33,628 $ 37,576 Accounts receivable, net 83,382 60,051 49, 128 Merchandise inventory 108,046 79,353 50,757 Prepaid expenses 9,548 8,827 4,135 Plant assets, net 267,231 247, 075 226,904 Total assets $ 497,563 $ 428,934 $ 368,500 Liabilities and Equity Accounts payable $ 121,415 $ 73,215 $ 49,615 Long-term notes payable 92,606 101,614 81,439 Common stock, $10 par value 162,500 163,500 163,500 Retained earnings 121,042 90,605 73,946 Total liabilities and equity $ 497,563 $ 428,934 $ 368,500 For both the current year and one year ago, compute the following ratios: Exercise 17-7 (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. (2-6) 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 20 Compute the current ratio for each of the three years. Current Ratio Denominator: Numerator: Accounts receivable 1 / 1 7 Current Year: 1 Year Ago: 2 Years Ago: Current Ratio Current ratio oto 1 O to 1 oto 1 {M Required 10 >