Current Year 1 Year 19 2 Years Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, het Total assets Liabilities and Equity Accounts payable Long-tern notes payable Common stock, $10 par value Retained earnings Total liabilities and equity 5 34,165 100,011 125,745 11,112 308,037 $ 579,070 538,738 67.791 92,352 10.169 290.148 $ 499,198 $ 41,184 56,021 61,458 4,484 257,053 $ 420,200 $147,072 109,954 162,500 159,544 $ 579,070 3.84,364 114,816 162,500 137,518 $ 499,198 $ 54,157 92,864 163,500 109,479 $ 420,200 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. 12-b) Did the acid-test ratio improve or worsen over the three-year perlod? Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 2A Required 28 Compute the current ratio for each of the three years. Current Ratio Numerator Denominator Current assets 1 Current Year: 1 1 Year Ago: 2 Years Ago: 1 Current Ratio Current ratio O to 1 O to 1 O to 1