Exercise 13-7 Analyzing liquidity LO P3 Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 29,097 86,001 107,080 9,463 256,642 $ 488,283 $ 33,338 $ 34,046 58,34145,849 75,537 50,299 8,928 3,783 244,790 209,923 $ 420,934 6 343,900 $ 122,798 $ 70,426 $ 45,849 92,715 162,500 110,270 $ 488,283 96,815 74,482 162,500 162,500 91, 19361069 $ 420,934 $ 343, 900 (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. Total liabilities and equity $ 488,263 $ 420,934 $ 343,900 (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 28 ices Compute the acid-test ratio for each of the three years. Acid-test ratio Choose Numerator: Choose Denominator: Acid-Test Ratio Acid-test ratio Current Yr Oto 1 Oto 1 Yrs Ago: