Exercise 13-7 Analyzing liquidity LO P3 Simon Company's year-end balance sheets follow. Current Yr1 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 $ 31,106 90, 154 113,352 9,821 272,447 $ 516,880 $ 36,360 $ 38,636 63,630 50,015 81,609 53,804 9,170 4,126 254,817 232,319 $ 445,586 $ 378,900 $ 127,416 $ 73,045 $ 50,015 97,173 162,500 129,791 $ 516,880 99,410 84,574 162,500 162,500 110,631 81,811 $ 445,586 $ 378,900 (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. 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 / Choose Denominator: Choose Numerator: - Current Yr: 1 Yr Ago: 2 Yrs Ago: Current Ratio Current ratio to 1 to 1 to 1 Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Did the current ratio improve or worsen over the three year period? Current ratio Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 2A Required 28 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 1 Yr Ago: 2 Yrs Ago: Ask Complete this question by entering your answers in the tabs below. Print References Required 1A Required 13 Required 2A Required 28 Did the acid-test ratio improve or worsen over the three year period? Acid-test ratio