EES Required information Use the following Information for the Exercises below. (Algo) The following information appilos to the questions displayed below] Simon Company's year-end balance sheets follow At December 31 Assets Cash Accounts receivable, het Merchandise Inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current Year 1 Year Ago 2 Years Agu 886 TE S 96.584 128,209 16.732 316,018 $ 40,527 70.922 91 898 10,432 278,051 $ 578.523 $ 491,830 Accounts payable $ 137,798 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity 107,258 163,500 161,967 $ 82.288 116,515 163.500 129 527 $ 570,523 $ 491 830 For both the current year and one year ago, compute the following ratios $ 40,978 53.030 58,200 2419 249,173 $405,800 53,030 92,372 163500 96,898 $ 405 800 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. (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 18 Required 2A Required 2B Compute the current ratio for each of the three years. Numerator Accounts receivable Current Year: 1 Year Ago: 2 Years Ago: Current Ratio Denominator: Current Ratio Current ratio 10 to 1 0 to 1 0 to 1 Required 1B S Required 1A Required 1B Required 2 Required 2B Compute the acid-test ratio for each of th Required 2A Current Year: 1 Year Ago: 2 Years Ago: Numerator: + Short-term investments + Acid-test ratio Denominator: =Acid-Test Ratio = Acid-test ratio 0 to 1 0 to 1 0 to 1 < Required 1B Required 2B >