Exercise 17-7 (Algo) Analyzing liquidity LO P3 Question 2A

Exercise 17-7 (Algo) Analyzing liquidity LO P3 (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? (2-6) 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 te Required 2A Required 28 Compute the add-test ratio for each of the three years. Acid est Denominator Current Year 1 Year Ago 2 Yearson Canh 5 5 Numerator Short-term investments 27006 - 31 561 + 21 Current receivables $ 00090 S 56 5267 RAS - Acid Test Ratio Acid-stratio Olot 001 no - Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. Current Year 1 Year Ago 2 Years 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 Common stock, 510 par value Retained earnings Total liabilities and equity $ 27,086 80,090 99,701 8,635 248,212 $ 463,724 $ 31,661 56,526 72,477 8,311 230,787 $ 399,762 $ 32,314 43,085 46,827 3,776 210,498 $ 336,500 $ 115,467 85,437 163,500 99,320 $ 463,724 $ 66,209 92,865 162,500 78,188 $ 399,762 $.43,974 73,623 162,500 56.483 5 336,500 For both the current year and one year ago, compute the following ratios