can you explain how to solve this question.

Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 36,790 43, 872 $ 44,796 Accounts receivable, net 105, 551 75 , 256 60, 319 Merchandise inventory 134, 064 101, 455 64, 252 Prepaid expenses 11, 728 11, 288 4,928 Plant assets, net 341, 719 311 , 105 273, 705 Total assets $ 629, 852 $ 542, 976 $ 448, 000 Liabilities and Equity Accounts payable $ 156, 833 $ 91,763 $ 60, 319 Long-term notes payable secured by mortgages on plant assets 116, 044 122, 387 99, 008 Common stock, $10 par value 162, 500 162,500 162 , 500 Retained earnings 194, 475 166,326 126, 173 Total liabilities and equity $ 629, 852 $ 542, 976 $ 448, 000 (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 Choose Numerator: / Choose Denominator: Current Ratio Total liabilities Current ratio Current Yr: 0 to 1 1 Yr Ago: S 0 to 1 2 Yrs Ago: 0 to 1Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Did the current ratio improve or worsen over the three year period? Current ratioComplete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Compute the acid-test ratio for each of the three years. Acid-test ratio Choose Numerator: 1 Choose Denominator: = Acid-Test Ratio 4 Acid-test ratio Current Yr: 0 to 1 1 Yr Ago: 0 to 1 2 Yrs Ago: 0 to 1Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Did the acid-test ratio improve or worsen over the three year period? Acid-test ratio