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, $10 par value Retained earnings Total liabilities and equity $ 31,778 92,192 115,801 18,132 283,462 $ 533,275 $ 36,842 $ 38, 386 65,648 51,075 85,048 54,400 9,847 4,130 263,135 235,189 $ 459,720 $ 383,100 $ 135,441 $ 78,470 $ 52,086 97, 248 162,5ee 138,086 $ 533,275 184,678 85,512 162,500 162,500 114,672 83,02 $ 459,720 $ 383,100 (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 perlod? (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? Required 1A Required 1B Required 2A Required 28 Compute the current ratio for each of the three years. Current Ratio Choose Numerator: 1 Choose Denominator: = Current Ratio Current ratio / to 1 Current Yr: 1 Yr Ago: 2 Yrs Ago: 1 to 1 to 1 Required 1A Required 18 Required 2A Required 2B Compute the acid-test ratio for each of the three years. Acid-test ratio Choose Numerator: 1 Choose Denominator: = Acid-Test Ratio 1 Acid-test ratio +++ 1 = Current Yr: 1 Yr Ago: 2 Yrs Ago: to 1 to 1 + to 1