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, sie par value Retained earnings Total liabilities and equity $ 31,8ee 89,500 112,500 19,700 278. See $ 523, eee $ 35,625 $ 37,800 62,500 50,20e 82, see 54, eee 9,375 5, eee 255,690 230, see $ 445, eee $ 377,500 $ 129,900 $ 75,250 $ 51,250 98,5ee 163, see 131. lee $ 523, ega 181, See 83,500 163,500 163,500 184,750 79,25e $ 145,00 $ 377,500 nces (1-6) Compute the current ratio for each of the three years (1-6) Did the current ratio improve or worsen over the three year period? (2-6) 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. (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 IANS Required 18 Required 2A Required 2B Compute the current ratio for each of the three years. Choose Numerator: Current Ratio Choose Denominator Current Ratio Current ratio Current Yr: to 1 1 Yr Ago 2 Yrs Ago: = = = = to 1 to 1 Required 18 > Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 2A Required 2B Did the current ratio improve or worsen over the three year period? Current ratio Required 1A Required 1B Required 2A Required 28 Compute the acid-test ratio for each of the three years. Acid-Test Ratio Choose Numerator: 1. Choose Denominator: Acid-Test Ratio Acid-test ratio to 1 + - Current Yr 1 Yr Ago 2 Yrs Ago to 1 to 1 Required 1A Required 16 Required 2A Required 2B Did the acid-test ratio improve or worsen over the three year period? Acid-test ratio