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, 51 par value Retained earnings Total liabilities and equity $ 30,661 89,762 113,987 9,674 280,839 $ 524,923 $ 36,292 $ 37,333 62,719 48,782 81,205 53,013 9,408 4,190 262,986 233,782 $452,520 5 377,180 $ 133, 320 $ 74,946 $ 49, 279 97,699 162,500 131,404 $ 524,923 106,161 81,672 162,500 162,500 108,913 83,649 $452,520 $ 377,100 (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. 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 Choose Denominator: Current Ratio Current ratio to 1 11 Current Yr: 1 Yr Ago: 2 Yrs Ago: 11 to 1 to 1 F Required 1B > Complete this question by entering your answers in the tabs below. Required IA Required 18 Required 2A Required 28 Compute the add-test ratio for each of the three years. Acidbestratio Choose Numerator: Choose Denominator Current Ye: 1 Yr Ago: 2 Yrs Ago: Acid Test Ratio Ad tertio ola oto 1 oto 1 =