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 $ 34,450 100,844 124, 282 11, 316 313, 001 $ 583,893 $ 39,866 $ 42,366 71,879 54,810 91,258 60,767 10,359 4,754 289,994 261,003 $ 503,356 $ 423,700 $ 148, 297 $ 83,366 $ 54,810 110,870 162,500 162,226 $ 583,893 113,456 90,829 162,500 162,500 144,034 115,561 $ 503,356 $ 423,700 (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 (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 Compute the current ratio for each of the three years. nces Current Ratio I Choose Denominator: Choose Numerator: Current Ratio Current ratio Current assets $ 435,596 Current Yr: 0 to 1 0 to 1 1 Yr Ago: 2 Yrs Ago Oto 1 Required 1A Required 1B >