Exercise 13-7 Analyzing liquidity LO P3 Simon Company's year-end balance sheets follow. Current Yr 1 Ye 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, $19 par value Retained earnings Total liabilities and equity 24,598 74,204 89,638 8,164 228,827 $ 425,431 $ 29,340 % 30,557 49,805 39,144 69,206 43, 399 7,856 3,295 210,544 186, 205 $366,751 $ 302,600 $ 103,814 $ 61,981 $ 39,544 78,381 162,500 80,736 $ 425,431 82,666 66,206 162,500 162,500 59,684 34,350 $366,751 $ 302,600 (1-0) 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 acld-test ratio improve or worsen over the three year period? (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 Compute the current ratio for each of the three years. Choose Numerator Current assets Current Ratio 1 Choose Denominator: Current liabilities Current Ratio Current ratio 11 0 to 1 Current Yr: 1 Yr Ago: 2 Yrs Ago: 0 to 1 11 0 to 1 Required Required 1B > Complete this question by entering your answers in the tabs below. Required I Required 15 Required 2A Required 20 Compute the test rabo for each of the three years Achete - Acid-Test Rabo Choose Numerator statements Choose Denominator Cats Centres Current Yr 1 Yr Age 2 Yrs Ago 001 0101 Required 18 Required 28 >