Exercise 13-7 Analyzing liquidity LO P3 Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory , Prepaid expenses Plant assets, net Current Yr 1 Yr Ago 2 Yrs Ago $ 27,322 79,187 $ 30,988 $ 32,941 55,889 44,809 96,605 71,660 48,681 8,799 8,383 3,771 246,582 228,334 205,898 $ 458,495 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 $ 111,882 87,921 162,500 $ 395,254 $ 336,100 $ 65,462 $ 43,034 89,090 162,500 73,535 162,500 96,192 78,202 57,031 $ 458,495 $395,254 $ 336,100 (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. ee 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. . " Current Ratio Current ratio to 1 = to 1 " to 1 Required 1A Required 18 > Current Ratio Choose Numerator: Choose Denominator: Current Yr: 1 Yr Ago: 2 Yrs Ago: (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. Check my w Required 1A Required 1B Required 2A Required 2B 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: to 1 1 Yr Ago: 2 Yrs Ago: to 1 " to 1