Exercise 13-7 Analyzing liquidity LO P3 Current Yr 1 Yr Ago 2 Yrs Ago Simon Company's year-end balance sheets follow. 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 $ 24,637 70,705 88,018 7,778 218,247 409,385 28,798 $ 30,007 48,914 40,009 63,984 43,040 7,634 3,301 203,588 183,743 $352,918 $ 300,100 $ 103,976 $ 59,047 $ 40,405 75,425 162,500 67,484 $ 409,385 81,983 67,649 162,500 162,500 49,388 29,546 $352,918 $ 300, 100 (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. (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 14 Requiredme Required 2A Required 2B Compute the current ratio for each of the three years. Current Ratio Choose Denominator: Choose Numerator: 1 = = Current Yr: 1 Yr Ago: 2 Yrs Ago: Current Ratio Current ratio to 1 to 1 to 1 II = Required 1B > aded Practice A (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 peri (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 pe Complete this question by entering your answers in the tabs be Required 1A Required 1B Required 2A Required 2B Did the current ratio improve or worsen over the three year period? Current ratio (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 Did the acid-test ratio improve or worsen over the three year period? Acid-test ratio