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, 510 par value Retained earnings Total liabilities and equity $ 37,077 105,310 136,461 11,582 337,987 $ 628,417 $ 44,206 $ 44,693 75,843 56,698 101,224 63,483 11, 718 4,773 388,748 268,653 $ 541,739 $ 438,300 $ 153,346 $ 94,301 $ 56,120 119, 324 162,500 193247 $ 628, 417 123,354 93,958 162,500 162,500 161,584 125, 722 $ 541,739 438,300 (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 acid-test ratio improve or worsen over the three year period? (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. Choose Numerator: Current Ratio 1 Choose Denominator: Current Yr: 1 Yr Ago: 2 Yrs Ago: Current Ratio Current ratio to 1 to 1 to 1 Per quad 1 Required 18 > Required 1A Required 1B Required 2A Required 2B Did the current ratio improve or worsen over the three year period? Current ratio Required 1A Required 18 Required 2A Required 2B Compute the acid-test ratio for each of the three years. Acid-test ratio Choose Numerator: Choose Denominator Current Yr 1 Yt Ago 2 Yrs Ago Acid-Test Ratio Acid fest ratio 101 fot tot Required 1A Required 1B Required 2A Required 2B Did the acid-test ratio improve or worsen over the three year p Acid-test ratio