b

Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago $ 25,941 72,975 92,679 8,026 231,442 $ 431,063 $ 29,431 $ 31,587 51,505 40,877 67,372 45,750 8,038 3,406 215,260 191,180 $ 371, 606 $ 312,800 At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 108,408 $ 62,801 $ 41,290 82,661 162,500 77,494 $ 431,063 83,760 69,820 162,500 162,500 62,545 39,190 $ 371,606 $ 312,800 (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 I Choose Denominator: Choose Numerator: Current Ratio Current ratio 11 to 1 Current Yr