Current Year 1 Year Ago 2 Years Ago 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 Common stock, $10 par value Retained earnings Total liabilities and equity $ 27, 474 81,219 98,113 8,847 250,000 $ 465,653 $ 32, 114 54,514 75,006 8,430 231,361 $ 401,425 $ 32,783 45,941 47,022 3,828 208, 326 $ 337,900 $ 114,788 87,543 163,500 99,822 $ 465,653 $ 67,841 92,328 163,500 77,756 $ 401,425 $ 45,495 72,436 162,500 57,469 $ 337,900 For both the current year and one year ago, compute the following ratios: (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? Retained earnings Total liabilities and equity 99,822 $ 465,653 77,756 $ 401, 425 57,469 $ 337,900 For both the current year and one year ago, compute the following ratios: The company's income statements for the current year and one year ago follow. Assume that all sales are on credit: For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Current Year $ 605, 349 $ 369,263 187,658 10, 291 7,870 575,082 $ 30,267 1 Year Ago $ 477,696 $ 310,502 120,857 10,987 7,165 449, 511 $ 28,185 Earnings per share $ 1.86 $ 1.73 (1-a) Compute days' sales uncollected. (1-b) Determine if days' sales uncollected improved or worsened in the current year. (2-a) Compute accounts receivable turnover. (2-b) Determine if accounts receivable turnover ratio improved or worsened in the current year. (3-a) Compute inventory turnover. (3-b) Determine if inventory turnover ratio improved or worsened in the current year. (4-a) Compute days' sales in inventory. (4-6) For each ratio, determine if days' sales in inventory improved or worsened in the current year